Question

If the simple interest on $4,000 for 7 years is $1,400, then what is the interest rate?

Answer 1

$1400 = $4000 × 7 × r / 100

$1400 = 28000 × r / 100

$ 1400 = $ 280 × r

rate = $1400 ÷ $ 280

rate = 5