What is the answer

Question

he 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 365 days in a year.

P​$13,500​, 9r​%, t120 days

Answer 1

Hi Amanda

The simple interest rate formula is

I = Prt Where I= Interest P= Principle r = rate in decimal not % t = time in years.

Since you have 120 days not a year, you have to use a fraction for t.

120days/ 365 days. This will give you the proportion of the year the interest rate would be applied

I = Prt

I = 13,500 (0.09) (120/365)

I = $399.45

Hope this helps!!