Question

directions:
show all work and circle your final answer.,
question 1 - simple interest (finding the rate)
a student invests $1,500 for 4 years and earns $420 simple interest
use the formula ( i = p cdot r cdot t ).
find the interest rate (r).

Explanation:

Step1: Substitute values into formula

Given \(I = 420\), \(P=1500\), \(t = 4\). Substitute into \(I=P\cdot r\cdot t\): \(420=1500\times r\times4\).

Step2: Simplify equation

First, calculate \(1500\times4 = 6000\). So the equation becomes \(420 = 6000r\).

Step3: Solve for \(r\)

Divide both sides by \(6000\): \(r=\frac{420}{6000}\). Simplify \(\frac{420}{6000}=\frac{420\div60}{6000\div60}=\frac{7}{100}=0.07\).

Answer:

\(r = 0.07\) (or \(7\%\))