Question

what interest rate is needed for $9,500 to earn $900 in 19 months?

Answer 1

9500 x 1.7

16150

17.9%

Answer 2

Answer:

The interest rate is 5.98%.  

Step-by-step explanation:

To find : What interest rate is needed for $9,500 to earn $900 in 19 months?

Solution :

The formula of interest is given by,

$I=P\times R\times T$

Where,

I is the interest amount I=$900

P is the principle P=$9500

T is the time T=19 months= $\frac{19}{12}$ year.

R is the interest rate

Substitute the value in the formula,

$900=9500\times R\times \frac{19}{12}$

$R=\frac{900\times 12}{9500\times 19}$

$R=\frac{10800}{180500}$

$R=0.0598$

The rate of interest in percentage is $R=0.0598\times 100=5.98\%$

Therefore, The interest rate is 5.98%.