Question

An account earns simple interest rate. Find the annual interest rate.

I= $30
P=$250
t=3 years

Answer 1

Hello!

To find the rate, you'll need to follow this formula

I=P*r*t

30=250*r*3

First, you'll need to rearrange the equation

30=250*3*r

Now you'll need to multiply 250 by 3 to get 750.

30=750r

Now you'll need to divide both sides by 750. Once you've divided 30 by 750 (30/750) you'll get 0.04. Next, you'll move the decimal twice to the right to get 4 or 4% as your rate.

Your rate is 4%

I hope this helps!