SOLUTION: You put $10,000 in a simple interest account at a bank. You will earn $1,800 in just 4 years. What is the annual interest rate for the account?

SOLUTION: You put $10,000 in a simple interest account at a bank. You will earn $1,800 in just 4 years. What is the annual interest rate for the account?

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Question 1058771: You put $10,000 in a simple interest account at a bank. You will earn $1,800 in just 4 years. What is the annual interest rate for the account?
Answer by solve_for_x(190) (Show Source): You can put this solution on YOUR website!
Simple interest is calculated as:

Interest = Principal * Rate * Time

Since $1,800 is earned on a principal of $10,000 in 4 years, the
equation gives:

1800 = 10000(Rate)(4)

Rate = 1800 / (10000 * 4)

Rate = 0.045 = 4.5%
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