Find the rate. Round to the nearest tenth of a percent.
-Principal: $6,500 Time: 120 days
Interest: $249.17
A)11.5%
B)7.6%
C)11.7%
D)3.8%

Question

Quizplus · Accepted Answer

To find the rate, use the formula for simple interest: Interest = Principal × Rate × Time. Rearrange to find Rate = Interest / (Principal × Time). Convert 120 days to years (120/365), then calculate: Rate = $249.17 / ($6,500 × (120/365)) = 0.115, which is 11.5% when rounded to the nearest tenth.

Find the Rate