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If Kachina Caron invested $1800 in a simple interest amount and earned $81 in 9 months, what is the annual interest rate?

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Final answer:

To calculate the annual interest rate of Kachina Caron's investment, we use the simple interest formula and rearrange it to solve for the annual rate, considering that the time period is 9 months.

Step-by-step explanation:

The correct answer is option annual interest rate.

To find the annual interest rate when Kachina Caron earned $81 from a $1800 investment in 9 months, you need to use the simple interest formula, which is I = PRT, where I is the interest earned, P is the principal amount, R is the annual interest rate, and T is time in years.

In this problem, I = $81, P = $1800, and T = 9/12 years (since 9 months is three-fourths of a year). First, we'll rearrange the formula to solve for R:

R = I / (PT)

Substituting the given values:

R = $81 / ($1800 × (9/12))

R = $81 / $1350

R = 0.06

Since R is expressed as a decimal, we need to convert it into a percentage:

R = 0.06 × 100

R = 6%

The resulting annual interest rate from the investment of $1800 with an interest of $81 in 9 months is 6%.

Therefore, the annual interest rate is 6%.

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