SOLUTION: A principal of $5000 was invested in a savings account for 4 years. If the interest earned for the period was $400, what was the interest rate?

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Question 71200: A principal of $5000 was invested in a savings account for 4 years. If the interest earned for the period was $400, what was the interest rate?
Answer by hailu(13) About Me  (Show Source):
You can put this solution on YOUR website!
given- I=$400, P=$5000, T=4yrs
I=PrT
R=I/pt
R=400/(5000*4)
R=400/20,000
R=4/200
R=2/100
R=2%
memorize the formula,ayt, peace