<PRE><B>Question 124936</B>
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 annual interest rate?  
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I = Prt
400 = 5000*r*4
r = 400/(4*5000)
r = 100/5000
r = 1/50
r = 0.02 or 2%
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Cheers,
Stan H.</PRE>