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An 80-day simple interest note for $2100 has a maturity value of $2236.33. What is the simple interest rate? Use 365 days.

User Dafi
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Final answer:

The simple interest rate for an 80-day note with a principal amount of $2,100 and a maturity value of $2,236.33 is approximately 9.29%.

Step-by-step explanation:

The question asks to determine the simple interest rate of a note. We are given that the note has a principal amount of $2,100, a maturity value of $2,236.33, and an interest period of 80 days, with the year assumed to have 365 days.

The simple interest can be calculated using the formula:

Simple Interest = Maturity Value - Principal Amount

In this case, it's $2236.33 - $2100 = $136.33. To find the rate, we use the formula:

Simple Interest = Principal × Rate × Time

Where:

  • Principal is $2100
  • Time is ⅖ (80/365) years
  • Simple Interest is $136.33

Rate can be found by rearranging the formula to:

Rate = Simple Interest / (Principal × Time)

Thus:

Rate = $136.33 / ($2100 × ⅖)

After calculating, we find that the simple interest rate is approximately 9.29%.

User Sjsc
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