Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest.
-Hank Wilkins invested $4,400 in a mutual fund containing bonds. Find the rate given that he earned $348.33 in 300 days.
A)9.8%
B)9%
C)8.5%
D)9.5%

Question

Quizplus · Accepted Answer

To use the banker's interest, we need to divide the amount earned by the product of the principal, rate, and time in years.
348.33 = (4400 x r x 300)/36500
Solving for r, we get:
r = 0.095 or 9.5%
Therefore, the answer is choice D (9.5%). Using the banker's interest formula, we have: 
Interest = Principal x Rate x Time 
348.33 = 4400 x Rate x (300/365) 
Simplifying, we get: 
Rate = 348.33 / 4400 x (365/300) 
Rate = 0.095, which is approximately 9.5% 
Therefore, the best choice is D) 9.5%.

Find Principal to the Nearest Dollar, Rate to the Nearest