Answer:
The rate is 6.43%
Step-by-step explanation:
Given
[tex]I = 450[/tex] --Interest
[tex]P = 5600[/tex] -- Principal
[tex]T= 15\ months[/tex] --Time
Required
Determine the rate
Using simple interest formula:
[tex]I = PRT[/tex]
Make R the subject
[tex]R = \frac{I}{PT}[/tex]
Convert time to years
[tex]T= 15\ months[/tex]
[tex]T =\frac{15}{12}\ years[/tex]
[tex]T =1.25\ years[/tex]
Substitute values for I, P and T
[tex]R = \frac{450}{5600*1.25}[/tex]
[tex]R = \frac{450}{7000}[/tex]
[tex]R = 0.0643[/tex]
Convert to percentage
[tex]R = 0.0643*100\%[/tex]
[tex]R = 6.43\%[/tex]
