At what simple annual interest rate would $1,896 grow to $2000 in 300 days?
A) 6.7%
B) 8.5%
C) 7.8%
D) 5.5%
E) 6.3%

Question

Quizplus · Accepted Answer

The simple interest formula is $I = PRT$, where $I$ is the interest earned, $P$ is the principal amount, $R$ is the annual interest rate (as a decimal), and $T$ is the time in years. Here, $I = \$2000 - \$1896 = \$104$, $P = \$1896$, and $T = \frac{300}{365}$ years (assuming a 365-day year). Solving for $R$, we get $R = \frac{I}{PT} = \frac{104}{1896 \times \frac{300}{365}} \approx 0.067$, or 6.7%.

At What Simple Annual Interest Rate Would $1,896 Grow to $2000