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. Compute the rate for the following loan. Round your answer to the nearest tenth of a percent.
Principal
Rate (%)
Time
Interest

\$50,000

9 months
\$4,500

(Points : 2)

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

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