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10 July, 04:17

If $400,000 bonds are issued on january 1 and pay $24,000 interest annually, what is the rate of interest?

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  1. 10 July, 04:42
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    Let r% be the rate.

    400000x r% x 1=24000

    400000x r% = 24000

    400000x r/100=24000

    400000x r=24000 x 100

    400000x r=2400000

    r=2400000/400000

    r=6

    The rate of interest is 6%.
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