Answer:
4%
Step-by-step explanation:
To solve this problem we can use a modified version of the simple interest formula which is shown below:
[tex]r=\frac{I}{Pt}[/tex]
P = initial balance
I = interest
t = time
Plug the values into the equation:
[tex]r=\frac{196}{(700)(7)}[/tex]
[tex]r=.04[/tex]
The last step is to convert 0.04 into a percent:
0.04(100) = 4
The interest rate is 4%.
