Question

Sheri invests $10,000 in a simple interest account. What interest rate must the account pay so she earns $2,000 in 5 years? * O 3% 2% O 2.5% and 4%​

Answer 1

4%

Explanation:

A=P(1+rt)

A=10,000(1+.04*5)

12,000

The total amount accrued, principal plus interest, from simple interest on a principal of $10,000.00 at a rate of 4% per year for 5 years is $12,000.00.