Question

after 1 year, $40,000 deposited in a savings account with simple interest had earned $3,200 in interest. 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: Identify given values

$i = 3200$, $p = 40000$, $t = 1$

Step2: Rearrange formula for $r$

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

Step3: Substitute values and calculate

$r = \frac{3200}{40000 \times 1} = 0.08$

Step4: Convert to percentage

$0.08 \times 100 = 8$

Answer:

8%