Question

The exact simple interest of 5000 invested from February 28, 2000 to December 31, 2000 is 1000. What is the rate of interest?

Answer 1

28.02.2002-31.12.2000 - 307 days

$FV=PV(1+\frac{307}{3663}i)$

PV=5000

FV=5000+1000=6000

$6000=5000(1+\frac{307}{3663}i)$

$1.2=1+\frac{307}{3663}i$

$0.2=\frac{307}{3663}i$

i=0.2384 or 23.84%