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

User Ravi Anand
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5% would be the correct
User Alisen
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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
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