SOLUTION: Find the exact simple interest rate of 10.75% for one year and 3 months? What is the exact discount rate?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Find the exact simple interest rate of 10.75% for one year and 3 months? What is the exact discount rate?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1185382: Find the exact simple interest rate of 10.75% for one year and 3 months? What is the exact discount rate?
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
.
Find the exact simple interest rate of 10.75% for one year and 3 months?
What is the exact discount rate?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 


One year and 3 months is  5%2F4  of a year.


Therefore, simple interest of 10.75% for one year and 3 months is equivalent to

    %284%2F5%29%2A0.1075 = 0.086 = 8.6% per year.    ANSWER

First question is answered.

I do not understand the meaning of the second question - so, I leave it without my answer.