Question 88715
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%