Answer:
13%
Step-by-step explanation:
Please use the $ sign.
The simple interest formula is i = p*r*t, where p is the principal amount, r is the interest rate as a decimal fraction, and t is the time in years. Here, t = 1/4 year; r is unknown, p is $5004 and i is $162.63.
Writing this out with the given info, we get:
$162.63 = $5004*r*(1/4).
We can solve this for r by multiplying both sides by 4/$5004:
(4/$5004)($162.63) = (4/$5004)($5004)*r*(1/4) = r
Evaluating r, we get (4)($162.63)/$5004 = 0.13
The interest rate, r, is 0.13, or 13%.
