Question

Determine the interest on the following notes: (Use 360 days for calculation.) (a) $5,000 at 6% for 90 days. $Enter the interest in dollars (b) $800 at 9% for 5 months. $Enter the interest in dollars (c) $6,000 at 8% for 60 days. $Enter the interest in dollars (d) $1,600 at 7% for 6 months. $Enter the interest in dollars

Answer 1

(a) $75

(b) $30

(c) $80

(d) $56

Step-by-step explanation:

(a) Principal amount p = $5000

Rate of interest r = 6 %

Time t = 90 days
`=(90)/(360)=0.25years`

We know that simple interest
`=(principal\ amount* rate* time)/(100)=(5000* 6* 0.25)/(100)=$75`

(b) Principal amount p = $800

Rate of interest r = 9 %

Time t = 5 month
`=(5)/(12)=0.4166years`

We know that simple interest
`=(principal\ amount* rate* time)/(100)=(800* 9* 0.4166)/(100)=$30`

(c) Principal amount p = $6000

Rate of interest r = 8 %

Time t = 60 days
`=(60)/(360)=0.1666years`

We know that simple interest
`=(principal\ amount* rate* time)/(100)=(6000* 8* 0.1666)/(100)=$80`

(d) Principal amount p = $1500

Rate of interest r = 7 %

Time t = 6 months
`=(6)/(12)=0.5years`

We know that simple interest
`=(principal\ amount* rate* time)/(100)=(1600* 7* 0.5)/(100)=$56`