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.

400=5000*4*r

400=20000r

0.02=r

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