Answer:
R = 0.8333%/month
(R = 9.9996%/year)
Equation:
r = (1/t)(A/P - 1)
Calculation:
Solving your equation:
r = (1/4)((8267.7/8001) - 1) = 0.00833333
r = 0.00833333
Converting r decimal to R a percentage
R = 0.00833333 * 100 = 0.8333%/month
Calculating the annual rate
0.8333%/month × 12 months/year = 9.9996%/year.
The interest rate required to get a total amount, principal plus interest, of $8,267.70 from simple interest on a principal of $8,001.00 over 0.333333 years (4 months) is 0.8333% per month.
