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.

A. 20%
B. 2%
C. 12%
D. 10%

Answer 1

I = 1832
P = 16000
T = 206 / 365 years
Rate of interest = [100 x I] / [P x T]
= [100 x 1832] / [16000 x 206 / 365]
= 20.29% per annul