Question

Carly made $10 in interest by placing $500 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

2% or 0.02

Explanation:

I=prt

10=500*x*1

10=500x

divide 500 by both sides

rate=0.02 or 2%