You can put this solution on YOUR website! 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?
Principal = p =$5000
Time = T = 4 yrs
Interest = I = $400
Rate of Interest = R = ?
I = PTR/100
therefore R = I*100/P*T
= 400(100)/5000*4
= 10/5
= 2%
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