Question

Sharon made $45 in interest by placing $500 in a savings account with simple interest for 1 year. What was the interest rate?

Answer 1

Answer: The interest rate was 9%.

Step-by-step explanation:

If principal amount P is invested at the rate of r percent with simple interest(I) for t years, the formula to find rate :

$R=\dfrac{I\times100}{P\times t}$

As per given,

P = $ 500, I = $45, t = 1 year

Substitute values in formula , we get

$R=\dfrac{45\times100}{500\times1}\\\\\Rightarrow R=9\%$

Hence,  The interest rate was 9%.