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Sue bought a six-month CD for $6000. She said that at maturity it paid $165.00 in interest. Assume that this was simple interest, and determine the APR.

 

What formula would I need to solve this?

Guest Mar 23, 2018
 #1
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Just divide:

 

$165 / $6,000 =0.0275 x 100 =2.75% simple interest for 6 months

2.75% x 2 =5.50% - simple annual interest rate.

Guest Mar 23, 2018
 #2
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Thanks for your help!

Guest Mar 23, 2018

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