what must be rate of interest of 5,400 to produce 202.50 interest in 6 months?


Sagot :

Derive the formula: Interest = Principal x Rate x Time

Rate = Interest
          Principal x Time

Rate = 202.50
         5,400 x 6/12
       = 202.50
         2,700
       = 0.075 ( move two places to the right to get the percent or simply to say times it into 100 to get the percent )
       = 7.50 %

Hope it helps.