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?
A) 1%
B) 1.5%
C) 2%
D) 2.5%
2007-08-28 05:16:43 · 4 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
$400 in 4 years is $100 per year at simple (not compound) interest. 100/5000 = 1/50 = 2%. C.
2007-08-28 05:23:34 · answer #1 · answered by Philo 7 · 0⤊ 0⤋
If the activity became into not compounded, it would be purely .08%. (under a million%) an extremely undesirable cost. that's even decrease if its compounded. this is advisable to hunt for a extra advantageous mark downs/investment plan.
2016-10-17 05:07:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If we assume simple interest, then 100/year = 2% (C)
2007-08-28 05:22:25 · answer #3 · answered by John V 6 · 0⤊ 0⤋
C
2007-08-28 05:24:16 · answer #4 · answered by Squatch 2 · 0⤊ 0⤋