Question 175613
If you went to a bank to deposit $1000 and they told you the interest rate was 3%, how would you know how much interest you would earn at the end of the year?  $1000(0.03) = $30.00.  So to get that $112, the original investment of $1400 was multiplied by some rate r.  So 1400r = 112.  Dividing by 1400, you get that r = 0.08, or 8%.