Question

Samuel deposited $50,030 in a savings account with simple interest. Six months later, he had earned $750.45 in interest. 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

3%

Explanation:

i = prt

We know that the principal (p) is $50,030, the time (t) is 6 months or 0.5 years, and the interest earned (i) is $750.45. We can plug in these values and solve for r:

$750.45 = $50,030r(0.5)

Dividing both sides by $25,015:

0.015 = r(0.5)

Dividing both sides by 0.5:

r = 0.03 or 3%

Therefore, the interest rate is 3%.