Question

Mr. Gardener invested $500,000. His annual interest was $40,000. What was the annual interest rate?

Answer 1

His annual interest rate is 8%

40,000 divided by 500,000 = 0.08

Move the decimal to the right 2 times to get your percent

Answer 2

Answer: The annual interest rate r= 8%

Explanation:

Given: The invested amount = $500,000.

The annual interest = $40,000

The annual interest rate is given by :-

`r=\frac{\text{interest}}{\text{invested amount}}*100\\\\\Rightarrow\ r=(40,000)/(500,000)*100\\\Rightarrow\ r=(4)/(50)*100\\\\\Rightarrow\ r=8\%`

Hence, the annual interest rate r= 8%