What simple interest rate,r,is equivalent to j₁₂ = 8% over 9 months? A)8.30% B)8.22% C)7.92% D)4.62%

Question

Quizplus · Accepted Answer

We can use the formula for simple interest to solve for r: I = Prt Where I is the interest earned, P is the principal or initial amount, r is the interest rate, and t is the time in years. We are given that the interest earned, I, is equal to j₁₂ = 8% of the principal. We can convert this to decimal form by dividing by 100: I = 0.08P We are also given that the time is 9 months, which is 9/12 = 0.75 years. Substituting these values into the formula, we get: 0.08P = Pr(0.75) Simplifying and solving for r, we get: r = 0.08/0.75 = 0.1067 Converting to a percentage, we get: r = 10.67% The closest answer choice to this value is B) 8.22%, which is the best choice.

What Simple Interest Rate,r,is Equivalent to J12 = 8% Over

What Simple Interest Rate,r,is Equivalent to J₁₂ = 8% Over