Question 464663
"$500 was originally invested into an account that earns simple interest.
 after 3 years the account had a total worth of $650.
 Write an equation to model the situation and then Find the interest rate."
:
The interest formula I = P*r*t
In this problem:
I = 150
P = 500
r = interest rate (which we are to find)
t = 3 yrs
so we have:
150 = 500 * r * 3
150 = 1500r
r = 150/1500
r = .10 which is 10% interest
:
You can confirm this in the interest equation
I = 500 * .10 * 3
I = 150
:
Did this make things clear in your mind? You have to agree once you see it, it is not very hard.