SOLUTION: if you invest $200 into a simple interest savings account for 5 years and earn $60 in interest what is the interest rate

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Question 606441: if you invest $200 into a simple interest savings account for 5 years and earn $60 in interest what is the interest rate
Answer by Cintchr(481) About Me  (Show Source):
You can put this solution on YOUR website!
Start with the simple interest formula
I+=+prt
p+=200
t=5
I=60
Substitute the values into the formula.
I+=+prt
60+=+200%28r%295%29
Multiply on the right side.
60+=+1000r
divide both sides by 1000
%2860%29%2F%281000%29+=+%281000r%29%2F%281000%29
reduce
6%2F100+=+r
Change the fraction to a percent
6% = r