Question

After 2 years, $300 deposited in a savings account with simple interest had earned $24 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

r = 4%

Explanation:

Given i= 24, p=300, t=2

i = prt

make r the subject of the formula (divide both sides by pt)

r= i/pt

substitute given values into the the new formula

r = 24/(300x2)

r = 0.04 (4%)