Annual rate = 1.05%
Simple interest formula is I = Prt * 100
Where P is principle, I is interest, r is rate and t is time.
Transpose to make r the subject
Prt * 100 = I
r = I/ Pt * 100
Substitute values into the equation.
Let I = $1260, P = $30,000 and t = 4 years
r = $1260/ $30,000 * 4 * 100
r = 0.0105 * 100
r = 1.05%
