Question

Sean deposited $200 into an account and earned $36 in interest after 3 years. Use the formula l = prt, where l represents simple interest, p represents principal, r represents interest rate, and t represents time in years. What is the interest rate? is it A) 0.06 B) 0.6 C) 6.0 D) 60

Answer 1

The correct option is : A) 0.06

Step-by-step explanation

The formula of Simple Interest:
`I= P*r*t` , here P = Principal amount, I = amount of interest earned, r = rate of interest in decimal and t= time in years.

Given that, Sean deposited $200 into an account and earned $36 in interest after 3 years. So here, P = 200 , I = 36 and t = 3

Plugging those values into the above formula.....

`36= 200*r*3\\ \\ 36= 600r\\ \\ r= (36)/(600)=0.06`

So, the interest rate is 0.06