Question

Find rate per year, if interest charged for 10 months is 0.05 times of the money borrowed.​

Answer 1

I = P0r

A = P0 + I = P0 + P0r = P0(1 + r)

I is the interest

A is the end amount: principal plus interest

P0 is the principal (starting amount)

r is the interest rate (in decimal form. Example: 5% = 0.05)