+0

# what is the rate of this

0
147
2

what is the rate of this if the simple interest is 4860 and principal is 36000 and the time is 1.5

Feb 8, 2022

#1
+689
+2

The formula for compound interest is $$A = P(1 + {r\over n})^{nt}$$, where A is the end goal amount, P is the principal, r is the interest rate, n is the number of times applied, and t is the time.

So plugging in the values:

$$A = 36000(1 + 4860)^{1.5}$$

Well, I have to admit, but you'll get a lot of money. A = 12200873726 (what that's like \$12.2b)

Feb 8, 2022
#2
0

Remember, it is "simple interest rate" he/she is looking for ! The formula you used is for "compound interest"

[36,000  x  1.5 years  x  R (simple interest rate)] ==4,860

[54,000R] ==4,860, solve for R

R ==4,860 /54,000==0.09  x  100 ==9% simple interest rate

Feb 8, 2022