Question

after 1 year, $7,000 deposited in a savings account with simple interest had earned $910 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.

15%

12%

13%

14%

Explanation:

Step1: Identify known values

We know that \( i = 910 \), \( p = 7000 \), and \( t = 1 \) (since the time is 1 year). The formula for simple interest is \( i = prt \).

Step2: Substitute values into the formula

Substitute the known values into the formula: \( 910 = 7000\times r\times 1 \).

Step3: Solve for \( r \)

Simplify the equation: \( 910 = 7000r \). Then divide both sides by 7000: \( r=\frac{910}{7000} \). Calculate the value: \( r = 0.13 \).

Step4: Convert to percentage

To convert the decimal to a percentage, multiply by 100: \( 0.13\times100 = 13\% \).

Answer:

13% (corresponding to the option "13%")