Question

A family deposited $8000 into an account six years ago. The account earned

simple interest at a yearly rate. So far the total interest earned is $1200. What is
the rate for the account?

Answer 1

Use I = prt

1200 = 8000r(1)

1200/8000 = r

0.15 = r

15% = r

Answer 2

For this you have to ask yourself:

$1200 is what percent of $8000

$1200/$8000 = x%
0.15 = x%
0.15 x100 = 15%

The rate for the account is 15%