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?
$165 / $6,000 =0.0275 x 100 =2.75% simple interest for 6 months
2.75% x 2 =5.50% - simple annual interest rate.
Thanks for your help!