Question

Sean made 4,800 in interest by placing40,000 in a savings account with simple interest for 1 year. What was the interest rate? Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Answer 1

To find the interest rate, we divide the interest earned by the principal and time. In this case, the interest rate is 12%.

Step-by-step explanation:

To find the interest rate, we can rearrange the formula i = prt to solve for r. Since Sean made $4,800 in interest by placing $40,000 in a savings account for 1 year, we have:

4800 = 40000 * r * 1

Dividing both sides of the equation by 40000 gives:

r = 4800 / 40000

Calculating the division, we get:

r = 0.12

To express this as a percentage, we multiply by 100:

r = 0.12 * 100 = 12%

Therefore, the interest rate is 12%.