Q:

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 l-Prt to find your answer, where lis interest. Pis principal, ris rate and tis time. Enter your solution in decimal form rounded to the nearest hundredth. For example, if your solution is 12%, you would enter 0.12.

Accepted Solution

A:
450 is your interest
3000 is your principle
3 is your time period

Our equation is:

450 = 3000(r)(3)
[tex] \frac{450}{3000} = 3(r)[/tex]
[tex] \frac{.15}{3} = r[/tex]
Interest rate = .05 or 5%