Question

With interest of $1,832.00 and a principal of $16,000 for 206 days, use the ordinary interest method to determine the rate.

Answer 1

A = total cost = interest + principal

A = P(1+i)^n

A/P = (1+i)^n

n rt(A/P) = 1+i

n rt(A/P) - 1= i

Answer 2

if we have a daily interest rate of i, then we have a yearly rate of 360i

Answer 3

well, 365i depending on what part of the world you are in