Question

Mike earned $67.00 in simple interest on an investment of $2800 after 9 months. What is the interest rate?

Answer 1

0.2659%

Explanation:

r = (1/t)(A/P - 1)

r = (1/9)((2867/2800) - 1) = 0.00265873

r = 0.00265873

R = 0.00265873 * 100 = 0.2659%/month