Business Math

. 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)

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asked by George

  1. 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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    posted by Reiny

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