Answer to Question #292991 in Algebra for Ella

Question

Susan deposited 49228 € for 31.3. – 28.8. and received net accrued interest of 322.6 €. The tax at source rate was 30 %. Calculate the nominal annual interest rate (= interest rate which contains both investor's and taxman's shares).

Answer 1

Days between 31^st march to 28^th August in a non-reap year=150

Days in the year$=365$

Accrued interest $=\frac{100}{70}×322.6$

$=460.9$

Let r $=$ Annual interest rate

$\frac{r}{100}×\frac{1}{365}×150×49228=460.9$

$r=2.28\%\>p.a$