BUSINESS, FUR1 2005 VCAA 1 MC

An investment of `$1200` for one year returns `$140.38` interest.
The simple interest rate per annum for this investment is closest to

A. 0.88%

B. 3.21%

C. 4.38%

D. 11.70%

E. 15.99%

Show Answers Only

`D`

Show Worked Solution

`text(Using)\ \ I`	`= (PrT)/100`
`r`	`= (100 xx I)/(PT)`
	`= (100 xx 140.38)/(1200 xx 1)`
	`= 11.698…`
	`≈ 11.70`

`=> D`