Answer:
Rate = 10%
Step-by-step explanation:
We are given with the following details.
Interest earned = $ 116.25
Principal = $ 1550
Interest Rate = r (say)
Time = 9 months
= [tex]\frac{9}{12} years[/tex]
We are asked to determine the rate of interest for which we can earn 116.25 interest. As we are not specifically given whether it is a compound or simple interest , we assume it to be simple interest and solve .
The formula for simple interest is given as
[tex]Interest = Principal \times Rate \times time [/tex]
[tex]116.25=1550 \times r \times \frac{9}{12}[/tex]
[tex] r= \frac{116.25 \times 12}{1550 \times 9}[/tex]
r=0.1
Hence the r = 0.1
Hence the rate of interest is 10%
