what is the ordinary and exact interest on $ 10,800.00 for 5 days at 8% simple inerest?

Question

 what is the ordinary and exact interest on $ 10,800.00 for 5 days at 8% simple inerest?

Answer 1

Good Morning, Miko,

The equation which assists us in determining the ordinary and exact interest is as follows: "

I = Prt 

Here "P" represents the principal, "r" represents the rate of interest for one year, and "t" represents time in years. 

We still good? Okay. 

Since the time period in our problem is 5 days, we need to convert the number of days into an equivalent number of years.  We know,  that a year consists of 365 days, right? To obtain the equivalent number of years, we must divide the number of days given in our problem by 365 days. Therefore: 

5
---    = .01369 or rounded, .0134  
365 

Next, you want to be certain to convert your interest rate by 100. The stated interest rate in our problem is 8%, right? Dividing that interest rate by 100 we obtain the following: .08

 

Now we have all of the essential information to solve the problem presented. Do you remember our original equation? No worries, because it is as follows: Remember the principal is the amount borrowed or saved, and in your problem the amount is stated as $10,800.00

I = Prt 

I = 10800 (.08) (.0134)
I ≈ 11.577 or $11.58 when rounded.




I hope I have assisted you with your question while wishing you a great upcoming week.  If you have any additional questions or feedback regarding my solution, please feel free to leave those comments directly beneath this solution. If you need further assistance, please feel free to reach out to any tutor for additional assistance.  Best!