The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume 360 days in a year. P=$17,500 R=10% T=60 days

Answer 1

For this we will need the simple interest formula:

A = P ( 1 + r * t)

and to find the simple interest you will use:

I = A - P

Now we can plug is the given values:

A = 17,500 ( 1 + .10 * (60/360)

We convert the 10% into decimal form, which is .10

We also need covert "t" into years by dividing given days by total days in a year which is (60 / 360).

So we get A = $18,375.

Now plug A and P into the second equation to get I.

I = $18,375 - 17,500

I = $875.00

-Fred