SOLUTION: Determine the simple interest rate at which $2400 will grow to $2475 in 6 months. (Round your answer to two decimal places.)

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Question 608908: Determine the simple interest rate at which $2400 will grow to $2475 in 6 months. (Round your answer to two decimal places.)
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi

Note:

In General A+=+P%281%2Br%2Fn%29%5Ent

A = Accumulated Amount

P= principal = 2400

r= annual rate = 

n= periods per year = 1

2475+=+2400%281%2Br%29%5E.5

%282475%2F2400%29+=+%281%2Br%29%5E.5

%281.03%29+=+%281%2Br%29%5E.5

    ln(1.03) = ln(1+r)^.5

    ln(1.03)/.5 = ln(1+r)

       e^.059 -1 = r = .0609 OR 6.09%