After 1 year, $1,000 deposited in a savings account with simple interest had earned $30 in interest. What was the interest rate?

Answer:

3%

Step-by-step explanation:

The formula for simple interest is I = PRT, where I = interest earned/paid, P = principal amount deposited or borrowed, R = rate of interest as a decimal, and T = time in years.

I = PRT

30 = (1000)(R)(1)

30 = 1000R

R = 0.03

Multiply by 100 to get the percentage of 3%

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