after 3 years, $7,000 deposited in a savings account with simple interest had grown to a total of $8,260…

after 3 years, $7,000 deposited in a savings account with simple interest had grown to a total of $8,260. 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.

after 3 years, $7,000 deposited in a savings account with simple interest had grown to a total of $8,260. 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: Calculate the interest earned

The principal $p = 7000$, the final amount $A=8260$. The interest earned $I=A - p$. So $I = 8260-7000=1260$.

Step2: Substitute values into the formula

We know $I = prt$, with $I = 1260$, $p = 7000$, and $t = 3$. Substituting these values into the formula gives $1260=7000\times r\times3$.

Step3: Solve for $r$

First, simplify the right - hand side of the equation: $7000\times r\times3 = 21000r$. Then, solve for $r$ from $1260 = 21000r$. We get $r=\frac{1260}{21000}=0.06$.

Step4: Convert $r$ to percentage

To convert the decimal $r$ to a percentage, multiply by 100. So the interest rate is $r\times100 = 6%$.

Answer:

6%