document.write( "Question 54800: Can someone help me?\r
\n" ); document.write( "\n" ); document.write( " 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?\r
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Algebra.Com's Answer #708144 by ikleyn(52803) $\"\"$ $\"About$

You can put this solution on YOUR website!
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document.write( "Let x be the annual interest rate (which is/(or MUST be) under the question).\r\n" );
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document.write( "    Let me underline and highlight it: the question is/(or MUST be) about the annual interest rate, \r\n" );
document.write( "    not about the 4-years time period interest rate, otherwise the problem loses its educational value).\r\n" );
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document.write( "Then the equation is\r\n" );
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document.write( " = 5400  ====>\r\n" );
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document.write( " =  = 1.08   (it is where the other tutor took his 8%)\r\n" );
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document.write( "1 + x =  = 1.019  ====>\r\n" );
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document.write( "x = 1.9%.\r\n" );
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document.write( "Answer.  Annual interest rate was 1.9%.\r\n" );
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document.write( "Check.    = 5390,  and the difference is due to rounding.\r\n" );
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