Posted by confused on .
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?
i know this is 1.5 % or at least I think it is but how do i write it out?
Use the equation I=Prt, where I=interest earned, P=principal amount, r=rate, and t=time.
So, from what is shown here, your answer was incorrect. It is 2%, and you also showed your work. Hope this works :-)
Sorry, the above post was by me, not "Anonymous". LOL