SOLUTION: Can someone help me on this problem? 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 interes

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Question 54949: Can someone help me on this problem?
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?
Thanks,
Sher

Answer by funmath(2933)   (Show Source): You can put this solution on YOUR website!
Hi Sher,
The formula for simple interest is: where I=interest, P=principle, R=rate, and T=time.
You want to solve for rate, so solve your formula for R:




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?
P=5000, T=4, I=400



If you need this expressed as a percentage, r=.02*100%=2%
Happy Calculating, Sher!!!

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