Question

A principal of $3000 was

invested in a savings account
for 3 years. If the interest
earned for the period was
$450, what was the interest
rate?
A=P+Prt

Answer 1

r = 0.05 or 5%

Explanation:

3450 = 3000 + (3000 · r · 3)

450 = 9000 · r

450/9000 = r

r = 0.05 or 5%