Use the simple interest formula to determine the missing value. Round dollar amounts to the nearest cent and percents to the nearest hundredth when necessary
-p = $2400, r = ?, t = 4 years, i = $720.00
A) r = 18.9%
B) r = 0.08%
C) r = 13.33%
D) r = 7.5%

Question

Quizplus · Accepted Answer

The simple interest formula is I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per period, and T is the time. Given I = $720, P = $2400, and T = 4 years, we can solve for R: $720 = $2400 * R * 4. Solving for R gives R = $720 / ($2400 * 4) = $720 / $9600 = 0.075, or 7.5%.

Use the Simple Interest Formula to Determine the Missing Value