Find the rate if the simple interest on 145,000.00 for 4 years is $4500.00
The formula for simple interest is:
I = P * r * t
Where:
I = Interest
P = Principal amount (in this case, $145,000.00)
r = Interest rate (unknown)
t = Time (in years, in this case, 4)
We know that the interest is $4,500.00, so we can plug in the known values and solve for r:
$4,500.00 = $145,000.00 * r * 4
Divide both sides by $145,000.00 * 4:
r = $4,500.00 / ($145,000.00 * 4)
r = 0.0077586
So the interest rate is 0.77586%, or approximately 0.78% (rounded to two decimal places).
To find the rate of simple interest, we can use the formula:
Simple Interest = Principal x Rate x Time
In this case, we are given:
Principal = $145,000.00
Simple Interest = $4,500.00
Time = 4 years
Plugging these values into the formula, we get:
$4,500.00 = $145,000.00 x Rate x 4 years
Divide both sides of the equation by $145,000.00 x 4 years:
$4,500.00 / ($145,000.00 x 4 years) = Rate
Simplifying the equation, we get:
Rate = $4,500.00 / $580,000.00
Calculating this, we find:
Rate ≈ 0.0077586 or 0.77586% (rounded to 5 decimal places)
Therefore, the rate of simple interest on $145,000.00 for 4 years is approximately 0.77586%.