Question

£2000 is invested at x% interest over three years. At the end of three years the money has grown to £2963. To the nearest percentage find the rate of interest.

If you could help me out I would greatly appreciate it. I've tried to figure it out numerous ways and have failed. Thanks. :)

Answer 1

If simple interest,

2000(1+3r) = 2963
r = 16%

If annually compounded interest,

2000(1+r)^3 = 2963
r = 14%

Answer 2

Thanks! :)