Atlas Tire Irons, Inc. is considering borrowing $5,000 for a 3 month period. The firm will repay the $5,000 principal amount plus $150 in interest.

Question

Quizplus · Accepted Answer

To find the interest rate, we can use the following formula: 
Interest = Principal x Rate x Time 
$150 = $5,000 x Rate x (3/12) 
Solving for the rate gives a decimal of 0.12, which translates to 12% when converted to a percentage. Therefore, the best choice is B.