+4 Citi Bk requires a deposit of $15000, will give me $250 bonus after 3 mos. What is its interest rate?
The bonus of $250 is only an incentive, independent of the interest rate !! If the $250 was interest paid to you after 3 months, then: $250/$15,000 =0.0166667 x 4 x 100 =6.67% - This would be your annual interest rate compounded quarterly. As stated, the question doesn't have enough information to find the interest rate. You must give a certain amount of interest money paid to you after a specific period of time. Then we can easily calculate the interest rate paid by the Bank.
