after 2 years, $20,000 deposited in a savings account with simple interest had earned $2,800 in interest…

after 2 years, $20,000 deposited in a savings account with simple interest had earned $2,800 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.

after 2 years, $20,000 deposited in a savings account with simple interest had earned $2,800 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 given values

$i = 2800$, $p=20000$, $t = 2$

Step2: Rearrange the formula for $r$

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

Step3: Substitute values

$r=\frac{2800}{20000\times2}$ $r=\frac{2800}{40000}=0.07$

Step4: Convert to percentage

$r = 0.07\times100%=7%$

Answer:

$7$