Question

A deposit of $2400 will earn $22.74 in 91 days at what rate of interest?​

Answer 1

`r=3.8\%`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=(91/365)\ years\\ P=\$2,400\\ I=\$22.74\\r=?`

substitute in the formula above

`22.74=2,400(91/365)r`

`22.74*365=2,400(91)r`

`r=22.74*365/[2,400(91)]`

`r=0.038`

`r=3.8\%`