Answer:
the interest rate for the savings account is 15%
Explanation:
We can use the formula for simple interest to solve this problem:
Simple Interest = Principal x Rate x Time
Where:
Principal is the amount of money invested
Rate is the interest rate (as a decimal)
Time is the length of time the money is invested
We know that Troy placed $40,000 in a savings account with simple interest for 5 years and earned $30,000 in interest. So we can plug these values into the formula to get:
$30,000 = $40,000 x Rate x 5 years
Simplifying this expression, we get:
Rate = $30,000 ÷ ($40,000 x 5 years)
Rate = 0.15 or 15%
Therefore, the interest rate for the savings account is 15%.