Answer:
12%
Step-by-step explanation:
The simple interest formula is i = p*r*t, where p is the principal, r is the annual interest rate as a decimal fraction, and t is the number of years.
Subtracting $45000 from $52500 yields $7500, which represents the amount of interest earned.
1 year, 4 months and 20 days is equivalent to:
1 year, 4/12 year and 20/360 year, or 1.389 years
Then i = $7500 = $45000*r*(1.389). Solving for r, we get:
7500
--------------------- = 7500/62505, or 0.11999. 0.12, or 12%, is a reasonable
45000(1.389) approximation.
