Answer:
6%
Step-by-step explanation:
To solve this problem we can use a modified version of the simple interest formula which is shown below:
![r=\frac{I}{Pt}](https://tex.z-dn.net/?f=r%3D%5Cfrac%7BI%7D%7BPt%7D)
<em>I = interest amount</em>
<em>P = principal amount</em>
<em>t = time (years)</em>
<em />
Now, lets plug in the values:
![r=\frac{1,200}{(5,000)(4)}](https://tex.z-dn.net/?f=r%3D%5Cfrac%7B1%2C200%7D%7B%285%2C000%29%284%29%7D)
![r=.06](https://tex.z-dn.net/?f=r%3D.06)
The last step is to convert 0.06 into a percent:
0.06(100) = 6
<u>The interest rate is 6%.</u>