ANSWER
R = 7%
EXPLANATION
We have that the amount invested in the account was $5000. That is the principal.
The amount after 3 years is $6050.
First, let us get the Simple Interest.
The interest is the amount in the account after the number of years minus the principal. That is:
I = 6050 - 5000
I = $1050
Simple Interest on a principal, P, at a rate R after T years is given as:
[tex]I\text{ = }\frac{P\cdot\text{ R }\cdot\text{ T}}{100}[/tex]We need to find rate R.
That is:
[tex]\begin{gathered} 1050\text{ = }\frac{5000\cdot\text{ R }\cdot\text{ 3}}{100} \\ \Rightarrow\text{ 1050 }\cdot\text{ 100 = 15000 }\cdot\text{ R} \\ \Rightarrow\text{ R = }\frac{105000}{15000} \\ R\text{ = 7\%} \end{gathered}[/tex]The annual simple interest rate is 7%
