Question

What interest rate is needed for $9,500 to earn $900 in 19 months?

Answer 1

The interest rate is 5.98%.

Explanation:

To find : What interest rate is needed for $9,500 to earn $900 in 19 months?

Solution :

The formula of interest is given by,

`I=P* R* T`

Where,

I is the interest amount I=$900

P is the principle P=$9500

T is the time T=19 months=
`(19)/(12)` year.

R is the interest rate

Substitute the value in the formula,

`900=9500* R* (19)/(12)`

`R=(900* 12)/(9500* 19)`

`R=(10800)/(180500)`

`R=0.0598`

The rate of interest in percentage is
`R=0.0598* 100=5.98\%`

Therefore, The interest rate is 5.98%.