Answer to Question #288930 in Economics of Enterprise for Daemus

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%