Answered: "What simple interest rate is equivalent to j..."

traquealwm

Answered question

2022-08-02

What simple interest rate is equivalent to

j_{2} = 15 %

if money is invested for 3 years?
Answer: ?%

kilinumad

Beginner2022-08-03Added 21 answers

Step 1
Let the simple interest rate be r

3 r = (1 + \frac{\frac{15}{100}}{2})^{1 \cdot 2} - 1

\Rightarrow 3 r = (1 + \frac{0.15}{2})^{6} - 1 \Rightarrow 3 r = (1 + 0.075)^{6} - 1 \Rightarrow 3 r = {1.075}^{6} - 1 \Rightarrow 3 r = 1.543301525634765625 - 1 \Rightarrow 3 r = 0.543301525634765625 \Rightarrow r = \frac{0.543301525634765625}{3} \Rightarrow r = 0.181100508544921875

Step 2

\Rightarrow r = 18.11 %

Simple interest rate is 18.11%

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