A principal of $2000 was invested in a savings account for 4 years. If the interest earned for that period was $480 what is the interest rate?
I = prt for r
I did:
2000= 480(4)
2000=1920
9.6%
480 = 2000 * r * 4
480 = 8000 * r
480/8000 = r
0.06 = 6% = r
Do you see where you made your mistake?
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To find the interest rate, we can use the formula I = prt, where I represents the interest earned, p represents the principal, r represents the interest rate, and t represents the time period.
In this case, we are given that the principal is $2000, the interest earned is $480, and the time period is 4 years.
We can substitute these values into the formula and solve for r:
480 = 2000 * r * 4
Dividing both sides of the equation by 8000:
0.06 = r
So the interest rate is 6%.
To find the interest rate, we need to use the formula for simple interest:
I = P * r * t
Where:
I = Interest earned
P = Principal amount (initial investment)
r = Interest rate
t = Time period (number of years)
In this problem, we are given:
P = $2000
I = $480
t = 4 years
Substituting these values into the formula, we have:
480 = 2000 * r * 4
Now, we can solve for r:
480 = 8000r
Dividing both sides by 8000, we get:
r = 480 / 8000
r = 0.06
To express the rate as a percentage, we multiply by 100:
r = 0.06 * 100
r = 6%
Therefore, the interest rate is 6%.