Question

You invested $500 in a savings account and after three years you had $650 in your bank. What was the interest rate? Use the equation I=PRT. Where I stands for interest on the original investment, P stands for the amount of the original investment, R is the interest rate, and T is the time. Write your answer in a percent form.

Answer 1

An increase of 43.3% per year

Explanation:

using the equation, plug in the respective variables. 650 =500R3, 3 times 500 is 1500. 650=1,500R. divide both sides by 1500 to get .4333, 3 repeating. .433 in percent form is 43.3%. (I just use 650 out of 500 or 650/500 which is 1.3 divided by 3 because 3 years to get the same amount)