Answer:
Interest rate, R = 26.35%
Explanation:
Given the following data;
- Time = 6 years
- Principal = $900,000
- Simple interest = $1,423,000
To find the interest rate, we would use the following formula;
[tex] S.I = \frac {PRT}{100} [/tex]
Where;
- S.I is the simple interest.
- P is the principal.
- R is the interest rate.
- T is the time measured in years.
Making "R" the subject of formula, we have;
[tex] R = \frac {100S.I}{PT} [/tex]
Substituting the values into the formula, we have;
[tex] R = \frac {100 * 1423000}{900000 * 6} [/tex]
[tex] R = \frac {142300000}{5400000} [/tex]
Interest rate, R = 26.35%
Therefore, the interest rate of this business is 26.35 percent.
