Question

Jackson had $104,292.12 in a savings account with simple interest. He had opened the

account with $80,040 exactly 3 years earlier. 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

Answer: Using the formula i = prt, we have:

i = (104292.12 - 80040) = 24252.12

p = 80040

t = 3

Substituting these values, we get:

24252.12 = 80040 * r * 3

Solving for r, we get:

r = 0.101 or 10.1%

Therefore, the interest rate is 10.1%.

Explanation: