Question

Keenan made $.24 an interest by placing $3 in a savings account with simple interest for two years what is the interest rate ?

Answer 1

To find the interest rate, we can use the formula for simple interest:

Interest = Principal × Rate × Time

In this case, the principal (amount of money initially invested) is $3, the interest earned is $0.24, and the time period is 2 years. We can plug these values into the formula and solve for the rate:

0.24 = 3 × Rate × 2

Dividing both sides of the equation by (3 × 2), we get:

0.24 / 6 = Rate

Simplifying:

Rate = 0.04

Therefore, the interest rate is 0.04 or 4%.

Answer 2

4%

Explanation:

To calculate the interest rate (r) for simple interest, we can use the following formula:

`\Large\boxed{I=Prt}`

where:

• I is the interest.
• P is the principal amount.
• r is the interest rate (in decimal form).
• t is the time (in years).

In this case:

• I = $0.24
• P = $3.00
• t = 2 years

Substitute the values into the formula and solve for r:

`0.24 = 3 \cdot r \cdot 2`

`0.24 = 6 r`

`(0.24)/(6) =(6r)/(6)`

`0.04=r`

To convert the value of r into a percentage, multiply by 100.

So, Keenan's savings account has a simple interest rate of 4%.