For 3 years I deposited my savings at Caja Arequipa, generating interest of S/. 1360 during those years, when I made the withdrawal of my savings plus interest it amounted to S/. 16,540. Calculate the annual interest rate.

- You deposited savings for 3 years - During those 3 years you earned interest of S/. 1360 - When you withdrew, your total amount was S/. 16,540 - Let's call your original savings amount S - Then after 3 years: \*\* Your original savings: S \*\* Interest earned each year (at the same rate): r*S \*\* Total after 3 years: S + 3*r\*S - We're given: \*\* Total withdrawn: S + 3*r*S = S/. 16,540 \*\* Total interest earned: 3*r*S = S/. 1360 - Set up two equations and solve for r: \*\* S + 3*r*S = S/. 16,540 \*\* 3*r*S = S/. 1360 \*\* 3*r*S/S = 1360/S \*\* r = 1360/3S = 0.08 = 8% Therefore, the annual interest rate is 8%.