Question

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

Answer 1

I=prt
600=300(r)(5)
600= 1500r
600/1500=r

Answer 2

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%