I = PRT
145.83 = 10,000 * R * 0.4167
148.83 = 4,166.67R
148.83/4,166.67 = R
0.0357 = R
3.57% = R
Asher cashed in a one-year term deposit after only five months had elapsed. In order to do so, he accepted an interest rate penalty—a reduction from the scheduled 5.5% rate of simple interest. If he was paid $145.83 interest on the $10,000 term deposit, what reduction was made in the per annum rate of simple interest?
1 answer
1 answer