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The simple interest on 2.000 for 5 years is $500, then what is the interest rate?

User RicLeal
by
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1 Answer

8 votes

Answer:

5%

Explanation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year,

then, solving our equation

I = 2000 × 0.05 × 5 = 500

I = $ 500.00

The simple interest accumulated

on a principal of $ 2,000.00

at a rate of 5% per year

for 5 years is $ 500.00.

User Alcaprar
by
4.4k points