Diana invested $3000 in a savings account for 3 years. She earned $450 in interest over that time period. What interest rate did she earn? Use the formula I=Prt to find your answer, where I is interest, P is principal, r is rate and t is time. Enter your solution in decimal form rounded to the nearest hundredth. For example, if your solution is 12%, you would enter 0.12.
Our givens are:
450 = 9000r
Divide each side by 9000
r = 0.05
Our givens are:
- I = 450
- P = 3000
- t = 3
- We want r
450 = 9000r
Divide each side by 9000
r = 0.05