57.8k views
5 votes
If the simple interest on ​a $5,000 investment for 4 years is ​$​1,000, then what is the interest​ rate?

User Ravi Anand
by
8.1k points

2 Answers

5 votes
5% would be the correct
User Alisen
by
8.2k points
5 votes

Answer:

If the simple interest on a $5,000 investment for 4 years is $1,000 the rate would be 5%

Explanation: To calculate simple interest use the formula Principal x Rate x Time / Years. In this case, by elimination you can fill in 5,000 x 0.05 x 4 years which comes out to 1000.

User Yamamoto
by
8.1k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.