Question

regan made $12,000 in interest by placing $60,000 in a savings account with simple interest for 4 years. 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. % submit

Explanation:

Step1: List given values

$I = 12000$, $p = 60000$, $t = 4$

Step2: Rearrange formula for $r$

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

Step3: Substitute values into formula

$r = \frac{12000}{60000 \times 4}$

Step4: Calculate decimal rate

$r = \frac{12000}{240000} = 0.05$

Step5: Convert to percentage

$0.05 \times 100 = 5$

Answer:

5%