Need simple interest rate (rounded to hundreths) on a loan of $3500 which in two months the maturity value was $3583. What is the formula to figure this problem?
(simple) interest = principal x rate x time
so the interest earned = $83
83 = 3500(rate)(2/12)
83 = (3500/6)rate
rate = 83(6/3500) = .1423
or
14.23% per annum