Answer:
4.5%
Step-by-step explanation:
Firstly we should understand that a quarter is every three months.
So if $135 is earned each quarter, then 4 * 135 = $540 is earned per annnum
We use the simple interest formula to get the rate.
Mathematically;
I = PRT/100
where P is the amount deposited = 12,000
R is what we are looking for which is the rate
T is the time which is 1 year
I is the interest which is 540
We can rewrite the simple interest formula to be:
100I = PRT
R = 100I/PT
Thus substituting the values we have;
R = (100 * 540)/(12,000 * 1) = 4.5%
Answer:
Step-by-step explanation:
Using the simple interest formula to tackle this question.
[tex]SI = \frac{PRT}{100}[/tex]
P = principal = $12,000
R = rate (in %) = ?
T = Time(in years) = 1/4 years
135 = [tex]\frac{12000*R}{100*4}[/tex]
[tex]135 = \frac{12000R}{400}\\ 54000 = 12000R\\R = \frac{54000}{12000}\\ R = 4.5\ %[/tex]
The annual rate of simple interest is 4.5%
