SOLUTION: At what rate of interest must a principal of $1545 be invested to earn interest of 58.93 in 150 days

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Question 1136835: At what rate of interest must a principal of $1545 be invested to earn interest of 58.93 in 150 days
Found 2 solutions by Alan3354, Theo:
Answer by Alan3354(69443) (Show Source):
You can put this solution on YOUR website!
Depends on the compounding period.

Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website!
i assume you're dealing with simple interest.

the simple interest formula is i = p * r * t

p is the principal.
r is the interest rate.
t is the time.

in your problem, the formula becomes 58.93 = 1545 * r * 150

solve for r to get r = 58.95 / (1545 * 150) = .000254368932.

that's the daily interest rate.

multiply that by 365 and you get .0928446602 per year.

multiply that by 100 and you get 9.28446602% interest rate per year.

interest = 1545 * .0928446602 / 365 * 150 = 58.95

looks good assuming you are dealing with a simple interest rate per year and the number of days in the year is assumed to be 365.

you were asked at what rate of interest must a principal of $1545 be invested to earn interest of 58.93 in 150 days.

your solution can be an interest rate of .000254368932 per day.

they did not specify the time period, so you should be able to stick with that.

if they need the annual interest rate, then your solution can be an interest rate of .0928446602 per year.

if they want the interest rate percent per year, then 9.28446602% per year.