A principal of $5000 was invested in a savings account for 4 years. If the interest earned for the period was $400, what was the interest rate?
2006-06-26 03:24:54 · 4 answers · asked by spontanious402000 1 in Science & Mathematics ➔ Mathematics
0.5%
2006-06-26 03:30:09 · answer #1 · answered by urshalak2525 2 · 0⤊ 0⤋
Let r = interest rate
I = Prt
where
I = interest
P=principal
t = time
Solving for r,
r = I/Pt
Substituting the values, we have:
r = ($ 400)/($ 5000)(4 yrs)
r = 0.02/yr
r = 2% / year
Therefore, the interest rate is 2 % every year..
^_^
2006-06-27 00:24:59 · answer #2 · answered by kevin! 5 · 0⤊ 0⤋
I = Prt
400 = (5000)r(4)
Solve for r.
2006-06-26 03:32:54 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I = PRT
400 = 5000(x)4
400 = 20000x
x = (400/20000)
x = 4/200
x = 1/50
x = .02
ANS : 2% interest rate.
2006-06-26 04:19:41 · answer #4 · answered by Sherman81 6 · 0⤊ 0⤋