document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=961172>Question 961172</A>: <I><SPAN STYLE=\"word-break: break-all;\"> nadia put $500 into a savings account. at the end of 1 year, she has earned $30 in interest. what interest rate was the bank paying?\r<BR>\n" );
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document.write( "What is the answer? How did you get the answer? How would you write this as a proportion/ratio? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #587410 by </B><A HREF=/tutors/aboutme.mpl?userid=rothauserc><B>rothauserc(4718)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=rothauserc><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=rothauserc><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=587410\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> we use the compound interest formula A = P(1 +r/n)^nt where A is amount including interest, P is principal amount, r is interest rate, n is number of times interest rate is compounded in a year, t is number of years<BR>\n" );
document.write( "for this problem, n=1 and t=1, therefore<BR>\n" );
document.write( "A = P(1+r)<BR>\n" );
document.write( "solve for r<BR>\n" );
document.write( "r = (A/P) -1 = 530/500 -1 = .06<BR>\n" );
document.write( "the rate is 6% or .06 per year<BR>\n" );
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document.write( "alternate way to calculate is 30/500 = 6% or interest/principal\r<BR>\n" );
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