SOLUTION: I want help solving this problem $5000.00 WAS PUT IN A SAVING ACCOUNT FOR 4 YEARS THE AMOUNT OF INTEREST EARNED WAS $400.00 WHAT IS THE INTEREST RATE?

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Question 61324: I want help solving this problem $5000.00 WAS PUT IN A SAVING ACCOUNT FOR 4 YEARS THE AMOUNT OF INTEREST EARNED WAS $400.00 WHAT IS THE INTEREST RATE?
Answer by joyofmath(189) About Me  (Show Source):
You can put this solution on YOUR website!
Assuming simple interest, not compound interest, if $400 interest was paid in 4 years then $100 was paid each year. $100/$5000 = 1/50 = 2%.
So, the annual interest rate was 2%. If the interest is compounded then post the problem again and tell us how often it is compounded.