Question

Jackson made $300 in interest by placing $1,000 in a savings account with simple interest for 2 years. What was the interest rate?

Answer 1

The interest rate was 15%

Explanation:

The simple interest formula is the easiest and most straightforward to use since it doesn't involve using logs or natual logs or Euler's number. It is

I = Prt

Filling in using our info gives us 300 = 1000(r)(2)

and 300 = 2000r

Divide both sides by 2000 and you get r = .15. Multiply by 100 to get the percentage.