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March 30, 2017

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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

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