Question

celine made $3,900 in interest by placing $30,000 in a savings account with simple interest for 1 year. 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.

Explanation:

Step1: List given values

$i = 3900$, $p = 30000$, $t = 1$

Step2: Rearrange formula for $r$

$r = \frac{i}{pt}$

Step3: Substitute values into formula

$r = \frac{3900}{30000 \times 1}$

Step4: Calculate decimal rate

$r = 0.13$

Step5: Convert to percentage

$0.13 \times 100 = 13$

Answer:

13%