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October 22, 2014

October 22, 2014

Posted by **George** on Sunday, January 5, 2014 at 10:26pm.

Principal

Rate (%)

Time

Interest

$50,000

9 months

$4,500

(Points : 2)

- Business Math -
**Reiny**, Sunday, January 5, 2014 at 10:37pmAre 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

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