jim put $5,000 in a savings account. at the end of a year the account had earned $400 in interest. what was…

jim put $5,000 in a savings account. at the end of a year the account had earned $400 in interest. what was the yearly interest rate of the account?\na 7.0%\nb 15.5%\nc 16.5%\nd 8.0%

jim put $5,000 in a savings account. at the end of a year the account had earned $400 in interest. what was the yearly interest rate of the account?\na 7.0%\nb 15.5%\nc 16.5%\nd 8.0%

Answer

Explanation:

Step1: Recall interest - rate formula

The formula for simple - interest is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the interest rate, and $t$ is the time in years. In this case, $t = 1$ year, $I=$400$, and $P = $5000$. We need to solve for $r$.

Step2: Rearrange the formula to solve for $r$

Since $I = Prt$ and $t = 1$, we have $r=\frac{I}{P}$. Substitute $I = 400$ and $P = 5000$ into the formula: $r=\frac{400}{5000}$.

Step3: Calculate the interest rate

$\frac{400}{5000}=0.08$. To convert this decimal to a percentage, multiply by 100: $0.08\times100 = 8%$.

Answer:

D. 8.0%