Question

Use the formula for simple interest, I = Prt, to find the indicated quantity. Assume a 360 day year.

Answer 1

Answer:

r = 8%

Step-by-step explanation:

Given that,

Interest, I = $24

Principal, P = $1200

Time, t = 90 days = 90/360 = 1/4 years

We need to find the rate.

We know that,

The simple interest is given by :

$I=\dfrac{Prt}{100}$

Put all the values,

$r=\dfrac{100I}{Pt}\\\\r=\dfrac{100\times 24}{1200\times \dfrac{1}{4}}\\\\r=8\%$

So, the rate is 8%.