seth deposited $3,000 in a savings account with simple interest. two years later, he had earned $420 in…

seth deposited $3,000 in a savings account with simple interest. two years later, he had earned $420 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.

seth deposited $3,000 in a savings account with simple interest. two years later, he had earned $420 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.

Answer

Explanation:

Step1: Identify values from problem

$I = 420$, $p=3000$, $t = 2$

Step2: Rearrange the simple - interest formula for $r$

Starting with $I=prt$, we solve for $r$: $r=\frac{I}{pt}$

Step3: Substitute values into the formula for $r$

$r=\frac{420}{3000\times2}=\frac{420}{6000}=0.07$

Step4: Convert $r$ to a percentage

To convert the decimal to a percentage, we multiply by 100. So $r = 0.07\times100 = 7%$

Answer:

$7$