## Algebra 1

$interest=principal\times rate\times\ time$ Interest is the amount earned, \$95. The principal is the amount deposited, \$1500. The rate is unknown. Let r be the rate. Time is the amount of time over which the interest is earned, 1 year. Substitute the given values and solve for r. $95=(1500)(r)(1)\longrightarrow$ divide both sides by 1500 $95\div1500=1500r\div1500\longrightarrow$ divide $0.06\overline3=r\longrightarrow$ convert decimal to a percent; move decimal 2 places right $6.\overline3\%=r$