Question

If money is invested for a short period of time, simple interest is paid using the following formula. I = Prt P represents the money invested, or principal amount, r is the simple interest rate, and t represents the time, in years, the money is invested. Given P = $500, t = 2 years, and I = $40, what is the simple interest rate?

Answer 1

Answer:

4%

Step-by-step explanation:

40=(500*r*2)/100

40=(500*r*2)/100*100/1 both sides

4000=1000r

r=4%