how do i find the interest rate on a savings account?

Question

mathmale · Answer

Unusual question.  Usually the interest rate is given, and you are asked to calculate the interest earned over a period of time.  Where have you found this question?  What was the context?

Of course, if you know the Amount, the Principal and the elapsed time, you can work backward to find the interest rate.  A=P(1+r)^t, where r is the annual rate expressed as a decimal fraction.

kaylaprincess · Answer

lemme find the question! Thanks for responding!

kaylaprincess · Answer

Amelia deposited $3,472 in a savings account earning simple interest 23 years ago. The account balance is now $5,148.98. What is the interest rate on the account?

kaylaprincess · Answer

@mathmale

mathmale · Answer

Exactly.  Your principal was $3,472 and your ending amount was $5,148.98.  How much of the latter figure came from interest?  Hint:  Subtract.

kaylaprincess · Answer

duhhhh thank you!