Question

Quinn made $18 in interest by placing $600 in a savings account with simple interest for 1 year. What was the interest rate?

a) 3%
b) 4%
c) 5%
d) 6%

Answer 1

To find the interest rate for Quinn's interest earnings of $18 from a $600 deposit, we use the simple interest formula and find that R = 0.03 or 3%. Consequently, the correct answer is option (a) 3%.

Step-by-step explanation:

The question asks to find the interest rate when Quinn made $18 in interest by placing $600 in a savings account with simple interest for 1 year. To find the interest rate, we can use the formula for simple interest: Interest (I) = Principal (P) × Rate (R) × Time (T). Given that the Interest (I) is $18, Principal (P) is $600, and Time (T) is 1 year, we need to solve for the Rate (R).

First, let's plug in the values we know:

$18 = $600 × R × 1

Now solve for R:

R = $18 / ($600 × 1)

R = 0.03 or 3%

Therefore, the interest rate is 3%, which is option (a).