Question

Diana invested $3000 in a savings account for 3 years. She earned $450 in interest over that time period. What interest rate did she earn? Use

the formula /=Prt to find your answer, where is interest, Pis principal, ris rate and tis time. Enter your solution in decimal form rounded to
the nearest hundredth. For example, if your solution is 1296, you would enter 0.12.

Answer 1

`r=0.05`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

A is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=3\ years\\ P=\$3,000\\I=\$450\\r=?`

substitute in the formula above

`450=3,000(3r)`

solve for r

`450=9,000(r)`

`r=450/9,000`

`r=0.05`