P=$1095 r=7.5% t=50days

Question

Find Simple Interest

Answer 1

The formula for simple interest is 

 

A = P(1 + rt), where P = principal (how much you started with), r = rate of interest, and t = amount of time

 

A is the accrued amount

 

We substitute into this formula using the info given. First, we convert 7.5% to 0.075. Then, we convert the number of days into a fraction of a year. 

 

50 days = 50/365 = 0.14 years (based on 365 days in one calendar year)

 

A = 1095(1 + 0.075 * 0.14)

A = 1095(1 + .0105)

A = 1095(1.0105)

A = 1106.50 dollars