Answer:
r=20%
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=5\ years\\ P=\$2,000\\ A=\$4,000\\r=?[/tex]
substitute in the formula above
[tex]4,000=2,000(1+5r)[/tex]
solve for r
[tex]2=(1+5r)[/tex]
[tex]5r=2-1\\5r=1\\r=\frac{1}{5}=0.20=20\%[/tex]
