Calculate the simple interest rate at which one can earn $2,200 per day interest on an investment of $8,500,000.
A) 9.45%
B) 25.86%
C) 3.86%
D) 13.61%
E) 7.30%

Question

Quizplus · Accepted Answer

The simple interest rate can be calculated using the formula: Interest = Principal × Rate × Time. Here, the interest is $2,200 per day, the principal is $8,500,000, and the time is 1 day (since it's per day interest, we consider the time as 1 day for the calculation). To find the rate, rearrange the formula: Rate = Interest / (Principal × Time). Plugging in the numbers: Rate = $2,200 / ($8,500,000 × 1) = 0.00025882353. To convert this to a percentage, multiply by 100, giving a rate of approximately 9.45%.

Calculate the Simple Interest Rate at Which One Can Earn