Find the rate if the simple interest on 145,000.00 for 4 years is $4500.00

Answer 1

The formula for simple interest is:

I = P * r * t

Where:

I = Interest
P = Principal amount (in this case, $145,000.00)
r = Interest rate (unknown)
t = Time (in years, in this case, 4)

We know that the interest is $4,500.00, so we can plug in the known values and solve for r:

$4,500.00 = $145,000.00 * r * 4

Divide both sides by $145,000.00 * 4:

r = $4,500.00 / ($145,000.00 * 4)
r = 0.0077586

So the interest rate is 0.77586%, or approximately 0.78% (rounded to two decimal places).