Question

10. Mikayla opens a savings account with a principal balance of $3,000. After 5 years, she earns $450 in interest. Using the equation = rt , where = interest, = principal, = rate, and =time.

a) Write an equation for r.

b) What is the interest rate on Mikayla’s account after 5 y

Answer 1

An equation for R would be: R = I/(PT)

The rate on her account on will be 3%

R = I/(PT)
R = 450/(3000 x 5)
R = 450/15000
R = 0.03 or 3%