Question

At what rate percent per annum will $400 yield an interest of $78 in 1 1/2 years?

A) 3%
B) 4%
C) 5%
D) 6%

Answer 1

To find the rate percent per annum, we can use the formula: Interest = (Principal * Rate * Time) / 100. Given that the principal is $400, the interest is $78, and the time is 1 1/2 years, the rate percent per annum is 13%.

Step-by-step explanation:

To find the rate percent per annum, we can use the formula:

Interest = (Principal * Rate * Time) / 100

Given that the principal is $400, the interest is $78, and the time is 1 1/2 years, we can plug these values into the formula:

78 = (400 * Rate * 1.5) / 100

Simplifying the equation, we get:

78 = 6 * Rate

Rate = 78 / 6 = 13%

Therefore, the rate percent per annum is 13%, which is not one of the given answer choices.