Answer:
Mr. Garden's investment has an annual interest rate of 8%
Step-by-step explanation:
To calculate the annual interest rate, we can use the formula:
Annual Interest Rate = (Annual Interest / Principal) * 100
In this case, the principal is $500,000 and the annual interest is $40,000.
Substituting these values into the formula, we get:
Annual Interest Rate = (40,000 / 500,000) * 100
Simplifying the expression:
Annual Interest Rate = 0.08 * 100
Therefore, the annual interest rate is 8%.
