SOLUTION: Please help: A principal of 5000 was invested in a savings account for 4 years. If the intrest earned for the period was $400.,what was the intrest rate?

Question 95044: Please help:
A principal of 5000 was invested in a savings account for 4 years. If the intrest earned for the period was $400.,what was the intrest rate?
Answer by tutorcecilia(2152) (Show Source): You can put this solution on YOUR website!
Use the formula for simple interest:
Interest = (Principle)(rate)(time) [plug-in the values and solve for the missing variable]
.
$400=($5,000)(rate)(4 years)
400=(20,000)(rate)
400/20,000=(20,000)(rate)/(20,000)
.02=rate
(.02)(100%)=rate
2%=rate
.
Checking:
I=Prt
400=(20,000)(.02)(4)
400=400 [checks out]

A principal of 5000 was invested in a savings account for 4 years. If the intrest earned for the period was $400.,what was the intrest rate?

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