Answer:
R=5%/year
Step-by-step explanation:
R = 5%/year
Equation:
r = I / Pt
Calculation:
Solving our equation
r = 1400 / ( 7000 × 4 ) = 0.05
r = 0.05
converting r decimal to a percentage
R = 0.05 * 100 = 5%/year
The interest rate required to
accumulate simple interest of $ 1,400.00
from a principal of $ 7,000.00
over 4 years is 5% per year.
