Erin is due a tax refund of 1000 A tax service will give her

Erin is due a tax refund of $1000. A tax service will give her the money 15 days early, but will charge $39 up front to do so. What annual simple interest rate is the tax service charging her?

Solution

Principla = $1000

t = 15/365 yrs

r = ?

Simple Interest = $ 39

Simple Interest = (Principal x rate x time )/100

39 = (1000 x r x15)/( 365*100)

39 = r* 0.41

r = 95.12 %annual simple interest rate is the tax service charging her