Answer:
.03 or 3%.
Step-by-step explanation:
Important:
I = interest
P = principal (investment)
R = simple interest rate
T = years
Formula: I = PRT
Given:
I = $240
P = 2000
T = 4 years
R = ?
Plug into formula:
240 = 2000(R)4
Multiply right side 2000*4
240 = 8000R
Divide both sides by 8000.
R = 240/8000
R = .03
The simple annual interest rate was .03 or 3%.
Therefore it .03 or 3%
