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A principal of $5000 be invested in a hoard justification for 4 years. If the interest earn for the term be $400 , what be the interest rate?

Answers:
If the give somebody the third degree is simple interest, next the answer is:

Interest = principal x rate x time

400 = 5000 x 4 years x rate

400 = 20000 x rate

400/20000 = rate

rate = .02 or 2%
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