Question

a principal of $4,000 was invested into a savings account for 5 years. If the interest earned for the period was $500 what was the interest rate? The hint is the formula for simple interest is I= PRT

Answer 1

500=4000(x)(5)

4000(5) = 20000

500 = 20000x

500/20000 = x

.025 = x

2.5%