Given data:
The principal is
[tex]P=\text{ \$5,000}[/tex]The time is
[tex]t=8[/tex]The interest is
[tex]=\text{ \$2,000}[/tex]Concept:
The formula to calculate interest rate (R) is given below as
[tex]\begin{gathered} I=\frac{P\times R\times T}{100} \\ 100I=P\times R\times T \\ divide\text{ both sides by PT} \\ R=\frac{100I}{PT} \end{gathered}[/tex]By substituting the values in the formula above, we will have
[tex]\begin{gathered} R=\frac{100I}{PT} \\ R=\frac{100\times2000}{5000\times8} \\ R=\frac{200000}{40000} \\ R=5 \end{gathered}[/tex]Hence,
The final answer is 5%
