Posted by **Matt** on Thursday, January 10, 2013 at 6:24am.

IF Tony earned $600 after investing $3,000 for five years, what was his interest rate?

- Algebra -
**fruit**, Thursday, January 10, 2013 at 8:11am
I=prt

600=300(r)(5)

600= 1500r

600/1500=r

- Algebra -
**Reiny**, Thursday, January 10, 2013 at 8:44am
fruit used "simple interest"

But for a five year period it is more likely that compound interest would be used

3600 = 3000(1+i)^5

1.2 = (1+i)^5

take the 5th root

1+i = 1.2^(1/5) = 1.037..

i = .037

or 3.7%

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