Question

Diana invested $3000 in a savings account for 3 years. She earned $450 in interest over that time period. What interest rate did she earn? Use the formula I=Prt to find your answer, where I is interest, P is principal, r is rate and t is time. Enter your solution in decimal form rounded to the nearest hundredth. For example, if your solution is 12%, you would enter 0.12.

Answer 1

I = prt
450 = 3000 x r x 3
450 = 9000r
450/9000 = 9000r/9000
r = 0.05