Answer:
R = 0.3636%/year
Equation:
r = (1/t)(A/P - 1)
Calculation:
Solving our equation:
r = (1/33)((7840/7000) - 1) = 0.00363636
r = 0.00363636
Converting r decimal to R a percentage
R = 0.00363636 * 100 = 0.3636%/year
The interest rate required to get a total amount, principal plus interest, of $7,840.00 from simple interest on a principal of $7,000.00 over 33 years is 0.3636% per year.
