Question

Mr. Gardener invested $500,000. His annual interest was $40,000. What was the annual interest rate?

Answer 1

Answer: The annual interest rate r= 8%

Step-by-step explanation:

Given: The invested amount =  $500,000.

The annual interest = $40,000

The annual interest rate is given by :-

$r=\frac{\text{interest}}{\text{invested amount}}\times100\\\\\Rightarrow\ r=\frac{40,000}{500,000}\times100\\\Rightarrow\ r=\frac{4}{50}\times100\\\\\Rightarrow\ r=8\%$

Hence, the annual interest rate r= 8%

Answer 2

His annual interest rate is 8%

40,000 divided by 500,000 = 0.08

Move the decimal to the right 2 times to get your percent