The simple interest charged on an 11-month loan of $99,000 is $818. Find the simple interest rate. (Round your answer to one decimal place.)

The formula for simple interest is given by:

\[
I = P \times r \times t
\]

Where:
- $ I $ is the interest ($818),
- $ P $ is the principal amount ($99,000),
- $ r $ is the interest rate (which we need to find),
- $ t $ is the time period in years.

Since the loan period is 11 months, we convert this to years:

\[
t = \frac{11}{12} \text{ years}
\]

Now, we can rearrange the simple interest formula to solve for the interest rate $ r $:

\[
r = \frac{I}{P \times t}
\]

Substituting the known values:

\[
r = \frac{818}{99,000 \times \frac{11}{12}}
\]

Let's calculate this value.The simple interest rate is approximately **0.9%**.

Would you like further details or have any questions?

Here are 5 related questions to deepen your understanding:
1. How would the interest rate change if the loan period was extended to 2 years?
2. What would the interest be if the principal were increased to $150,000 at the same rate?
3. How does compound interest differ from simple interest in calculations?
4. Can you calculate the total amount to be paid at the end of the loan period?
5. What happens to the interest if the loan term is shortened to 6 months?

**Tip:** Simple interest remains constant over time, while compound interest grows faster due to accumulating interest on interest.

Learn how to calculate the simple interest rate for an 11-month loan of $99,000 with an interest of $818. This problem demonstrates key concepts of simple interest, time conversion, and algebraic manipulation. Suitable for students in Grades 8-10.

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