If the simple interest charged for 9 months be 0.12 times the money borrowed, what is the rate percent per year?
- A15%
- B18%
- C16%
- D12%
Solution & Step-by-step Explanation
Let the money borrowed (Principal, P) be x.
Simple Interest (SI) = 0.12x
Time (T) = 9 months =
12
9
years =
4
3
years
The formula for simple interest is:
SI=
100
P×R×T
0.12x=
100
x×R×
4
3
Cancel x from both sides:
0.12=
400
3R
3R=0.12×400
3R=48
R=
3
48
=16%
Simple Interest (SI) = 0.12x
Time (T) = 9 months =
12
9
years =
4
3
years
The formula for simple interest is:
SI=
100
P×R×T
0.12x=
100
x×R×
4
3
Cancel x from both sides:
0.12=
400
3R
3R=0.12×400
3R=48
R=
3
48
=16%