Question

after 2 years, $100 deposited in a savings account with simple interest had earned $24 in interest. what was the interest rate? use the formula $i = prt$, where $i$ is the interest earned, $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, and $t$ is the time in years.

Explanation:

Step1: Identify known values

We know that \( i = 24 \), \( p = 100 \), and \( t = 2 \). The formula is \( i = prt \).

Step2: Solve for \( r \)

Rearrange the formula \( i = prt \) to solve for \( r \): \( r=\frac{i}{pt} \).
Substitute the known values: \( r = \frac{24}{100\times2} \).
Calculate the denominator: \( 100\times2 = 200 \).
Then \( r=\frac{24}{200}=0.12 \).
To convert this decimal to a percentage, multiply by 100: \( 0.12\times100 = 12\% \).

Answer:

12