Hanson made $60 in interest by placing $3,000 in a savings account with simple interest for 1 year. What was the interest rate?

Question

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 options:
A) 0.02
B) 0.05
C) 0.06
D) 0.10

Quizzma Team · Answer

To find the interest rate using the formula ( i = prt ), we can rearrange the formula to solve for ( r ):

[

r = frac{i}{pt}

]

Given:

– ( i = $60 )

– ( p = $3000 )

– ( t = 1 , text{year} )

Plugging in the values:

[

r = frac{60}{3000 times 1} = frac{60}{3000} = 0.02

]

So, the interest rate is ( 0.02 ) or ( 2% ).

The correct answer is A) 0.02.

Hanson made $60 in interest by placing $3,000 in a savings account with simple interest for 1 year. What was the interest rate?

1 Answer