Answer:
R = 6.2695%/year
Equation:
r = (1/t)(A/P - 1)
Explanation:
Calculation:
Solving our equation:
r = (1/13.3)((1250/681.63) - 1) = 0.0626947
r = 0.0626947
Converting r decimal to R a percentage
R = 0.0626947 * 100 = 6.2695%/year
The interest rate required to get a total amount, principal plus interest, of $1,250.00 from simple interest on a principal of $681.63 over 13.3 years is 6.2695% per year.