Maria has a savings account that is earning simple interest. If she started with $200 in the account and has earned a total of $8 in interest in two years, what is the rate of the account? Use the formula r= i/pt .

A.12.5
B.0.08
C.0.00125
D.0.02

Question

Maria has a savings account that is earning simple interest. If she started with $200 in the account and has earned a total of $8 in interest in two years, what is the rate of the account? Use the formula r= i/pt .

A.12.5
B.0.08
C.0.00125
D.0.02

Mercury · Answer

old question but will respond to help out future users

r = i/(pt) 
i is the amount earned as interest ($8)
p = the principal (the initial amount invested, or $200)
t = time = 2 yrs