Question
A principal of $5000 was invested in a savings account for 4 years. If the interest earned for the period was $400, what was the interest rate? [Hint: The formula for simple interest is I=Prt.]
Answers
I = PRT
400 = 5000 * R * 4
400 = 20,000R
0.02 = R
R = 2%
400 = 5000 * R * 4
400 = 20,000R
0.02 = R
R = 2%
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