Question

1. daniel deposited $40,000 in a savings account with simple interest. five years later, he had earned $9,000 in interest. what was the interest rate?
2. 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

$i = \$20,000$, $p = \$40,000$, $t = 5$ years

Step2: Rearrange formula for $r$

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

Step3: Substitute values into formula

$r = \frac{20000}{40000 \times 5}$

Step4: Calculate decimal rate

$r = \frac{20000}{200000} = 0.1$

Step5: Convert to percentage

$0.1 \times 100 = 10$

Answer:

10%