After 3 years, a $1,500 investment is worth $1,680. What is the interest rate on the investment?

The investment earned $1,680 − $1,500 = $180 over 3 years. Assuming a simple annual interest rate, the rate is $180 ÷ ($1,500 × 3) = 0.04, or 4.0% per year. The correct choice is 4.0 percent.

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