Question

Bernie deposited $30,000 in a savings account with simple interest. One year later, he had earned $3,300 in interest. What was the interest rate?

Answer 1

• The interest rate is 11%.

Explanation:

Let's use PRT/100 = Interest to solve this problem

We know that:

• Formula: Principle x rate x time/100 = Interest

Work:

• 30,000 x r x 1/100 = 3,300
• => 300 x r x 1 = 3,300
• => 300r = 3,300
• => r = 3,300/300
• => r = 11

Hence, the interest rate is 11%.