Question

1) $400 interest is earned on a principal of $2,000 at a simple interest rate of 5%

interest per year. For how many years was the principal invested?

Answer 1

4 years

Explanation:

I = $ 400

R = 5%

P =$ 2000

I = Prt

400 = 2000 *
`(5)/(100)` * t

400 = 20 * 5 * t

400 = 100 t

`(400)/(100)=t`

t = 4 years