Answer:
Rate = 6.56%
Step-by-step explanation:
Principal (P) = $5000
Interest (I) = $6312
Time (T) = 4 years
Rate (r) = ?
This question is involves simple interest and with the formula, we can easily plug in the values to find the rate.
S.I = P(1 + rt)
S.I = simple interest
P = principal
R = Rate
T = Time
6312 = 5000(1 + r*4)
6312 = 5000 + 5000*4r
6312 - 5000 = 20000r
1312 = 20000r
r = 1312 / 20000
r = 0.0656
Rate are calculated in percentage hence we'll multiply it by 100
R = 6.56%
