Use the simple interest formula to find the missing value. Rates are annual rates. Assume 360 days per year and 30 days per month. p = $6404, r = ?, t = 4 months, i = $202.79
A. r = 10.53%

B. r = 0.10%

C. r = 7.4%

D. r = 9.5%

Question

Use the simple interest formula to find the missing value. Rates are annual rates. Assume 360 days per year and 30 days per month. p = $6404, r = ?, t = 4 months, i = $202.79 
 A. r = 10.53%  
 
 B. r = 0.10%  
 
 C. r = 7.4%  
 
 D. r = 9.5%

anonymous · Answer

The answer is option D(9.5%).

anonymous · Answer

$$I=(P*R*T)/100$$$$R=(100*I)/(P*T)$$Substituting the values we get, $$R=(100*202.79$)/(6404*(1/3)years)$$$$R=9.5(approximately)$$

anonymous · Answer

NOTE: Here 4 months has been taken as (1/3) years.