Jacob invested $300 in a savings account and earned $81 in simple interest at the end of 9 years.
What was the interest rate?
Question 9 options:
3%
3.5%
4%
4.5%
To find the interest rate, we can use the formula for simple interest:
I = P * r * t
Where:
I is the interest earned
P is the principal amount (initial investment)
r is the interest rate per year
t is the time (in years)
In this problem, we are given:
I = $81
P = $300
t = 9 years
Plugging in these values, we get:
81 = 300 * r * 9
To solve for r, divide both sides of the equation by 300 * 9:
81 / (300 * 9) = r
r ≈ 0.03
So the interest rate is approximately 0.03, which is equivalent to 3%.
Therefore, the correct answer is 3%.