Step By Step!

Question

If the simple intrest on $2,000 for 4 years is $400, then what is the intrest rate?

Answer 1

Simplw interest , SI = $ 400 

Princilple , P = $2000

Time, T = 4 yrs

Rate, R = ?

SI = PRT/100

therefore R = SI x 100 /(PxT) = 400x 100/(2000x 4) = 5% (answer)