Asked by Issa

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

Answered by Ms. Sue
I = PRT
400 = 5000 * R * 4
400 = 20,000R
0.02 = R

R = 2%

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