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Georgia [21]
4 years ago
11

An account earns simple interest. Find the annual interest rate, I= $60 P= $500 t= 2 years

Mathematics
2 answers:
valina [46]4 years ago
8 0
I think the answer is1666%
Hunter-Best [27]4 years ago
8 0
Formula
If it is a simple rate, then the formula is
I = P * r * t

Givens
P = 500
r = ???
t = 2 years
i = 60 

Sub and solve
P = p * r * t
60 = 500 * r * 2   Combine the factors.
60 = 1000 * r       Divide by 1000
r = 60 / 1000
r = 0.06

Convert this to a percent.
0.06 = x / 100 multiply both sides by 100
0.06 * 100 = x
x = 6%
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