Question

Determine the simple interest. (Assume 360 days in a year.)

p= $544, r=0.047% per day, t= 3 months
The simple interest on $544 at 0.047% per day for 3 months is $
(Round to the nearest cent.)
.

Answer 1

The simple interest is $23.01 approximately.

SOLUTION:

Given, p= $544, r=0.047% per day, t= 3 months

we need to find the simple interest on $544 at 0.047% per day for 3 months.

We know that,

`Simple Interest $=\left((p * r * t)/(100)\right)$`

where, p = principal amount

r = rate of interest

t = number of years

Here, rate and time period are in days and months respectively. But we need to convert both of them into years.

R = 0.047%
`*` 360 [since we have to assume there are 360 days in a year]

R = 16.92%

Now t = 3 months

`=3 * (1)/(12)$ years$=(1)/(4)$ years`

Now, S.I =
`$\left((544 * 16.92 * (1)/(4))/(100)\right)$`

`=\left((544 * 4.23)/(100)\right)$$=\left((2301.12)/(100)\right)$$=23.0112$`

Hence, the simple interest is $23.01 approximately.