If I put $500 into an account and left it alone for three years earning simple interest, and at the end of three years I withdrew $650, what interest rate was I earning? Can you explain how you got your answer so i can understand what to do.
Simple interest formula is: A = P ( 1 + rt )
A - final amount 650 = 500 ( 1 + r * 3 ) /500
P - principal 650/500 = 1 + 3r
r - interest rate 1.3 = 1 + 3r
t - time ( in years) 3r = 0.3
r = 0.1 ( 10% )