SOLUTION: Mitchell has been given the option of either paying his $900 bill now or settling it for $918 after 1 month (30 days). If he chooses to pay after 1 month, find the simple interest

Question 1185137: Mitchell has been given the option of either paying his $900 bill now or settling it for $918 after 1 month (30 days). If he chooses to pay after 1 month, find the simple interest rate at which he would be charged.

Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
Mitchell has been given the option of either paying his $900 bill now or settling it for $918 after 1 month (30 days).
If he chooses to pay after 1 month, find the simple interest rate at which he would be charged.
:
= .02 * 100 = 2% per month
which is
12 * 2 = 24% annual interest
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