Question

The simple interest rate which is equal to a discount rate of 12% per year for a period of 18 months is ?

1. 10.32%

2. 0.12%

3. 12.00%

4. 14.36%

How do I work it out?

Answer 1

$r=\frac{0.12}{1-1.5\times0.12}=0.1463$ = 14,63%