. Compute the rate for the following loan. Round your answer to the nearest tenth of a percent.
(Points : 2)
Business Math - Reiny, Sunday, January 5, 2014 at 10:37pm
Are we doing simple interest?
notice your data did not line up nicely, do we have
principal = $50000
rate = ????
time = 9 months
interest = $4500 ?
rate = interest/(principal x time)
= 4500/(50000(9/12)) = .12
So the simple interest rate is 12% per annum