Chapter 6, Problem 49CR

To determine

To calculate the rate of simple interest for Lucas.

Answer to Problem 49CR

5.48%

Explanation of Solution

Given:

Principal: $10,500

Interest: $276.50

Time: 48 months

Formula used:

Simple interest, $I=prt$

Calculation:

Using the formula and substituting the given values,

  $\begin{array}{c}I=prt\\ 276.50=10500\times r\times 48\\ 276.50=5,04,000\times r\\ \frac{276.50}{5,04,000}=r\\ 5.48=r\end{array}$

Conclusion:

Therefore, the rate of interest is 5.48%.