Question

Find the missing interest rate.

I = $63
P = $420
r = %
t = 3 years

Answer 1

Answer: r=5%

Explanation:

I=Prt

I/P=Prt/P

I/P=rt

I/(P*t)=rt/t

r=I/Pt

r=63/(420*3)

r=21*3/(420*3)

r=21/420

r=1/20

r=0.05

r=0.05 * 100%

r=5%