Use I = Prt for simple interest to find the indicated quantity.
-P = $13,500; t = 4 months; I = $517.50. Find r.
A) 7.7%
B) 11.5%
C) 11.7%
D) 3.8%

Question

Quizplus · Accepted Answer

To find the rate r, use the formula I = Prt. Convert the time to years: t = 4/12 = 1/3 years. Rearrange the formula to solve for r: r = I / (Pt). Substitute the values: r = 517.50 / (13,500 * 1/3) = 0.115, which is 11.5%.

Use I = Prt for Simple Interest to Find the Indicated