$720, 4.25%, 3 months. find the interest rate

Question

anonymous · Answer

can i have an answer

anonymous · Answer

4.25% is 0.0425 in decimal....multiply by $720, and interest rate is $30.60

anonymous · Answer

how is that possible if you started with 720 dollars and ended up with 30 dollars

anonymous · Answer

Hold on, the interest rate formula is as so:  A = P(1+rt), where A is interest rate, P is your starting amount or principal, r is the rate as a decimal, and t is time.  3 months divided by 12 months per year is 1/4, or 0.25.  So plug in everything:  A = 720(1+0.0425 * 0.25) = $727.65, however your interest rate should simply be 4.25%

anonymous · Answer

This is used to calculate the principal plus interest