SOLUTION: Can someone help me? A principal of $5,000 was invested in a savings account for 4 years. If the interest earned for the period was $400, what was the interest rate? Than

Algebra ->  Algebra  -> Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: Can someone help me? A principal of $5,000 was invested in a savings account for 4 years. If the interest earned for the period was $400, what was the interest rate? Than      Log On

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Question 54800: Can someone help me?
A principal of $5,000 was invested in a savings account for 4 years. If the interest earned for the period was $400, what was the interest rate?
Thank you,
Ashley
Answer by Cintchr(475) About Me  (Show Source):
You can put this solution on YOUR website!
Simple interest is found using the formula

+I=prt+
+400+=+5000%28r%29%284%29+
+400+=+20000r
+400%2F20000+=+r+
+4%2F200+=+r+
+2%2F100+=+r+
+.2+=+r+
2% = r