Final answer:
To find the simple interest rate Hakim received from his savings, we applied the formula for simple interest and found that the rate was 1% per year.
Step-by-step explanation:
The student's question asks how to calculate the simple interest rate given the interest earned, the principal amount, and the duration the money was invested. We can use the simple interest formula, which is:
Interest = Principal × Rate × Time
In this case, Hakim made $2,500 in interest by placing $50,000 in a savings account for 5 years. To find the interest rate, we rearrange the formula to solve for the rate (R):
R = Interest / (Principal × Time)
So we calculate:
R = $2,500 / ($50,000 × 5)
R = $2,500 / $250,000
R = 0.01
The interest rate is therefore 1% per year. We have simply divided the total interest earned by the product of the principal and the number of years.