Question

Find the interest due on $1,400 at 9% for 270 days. (Remember that for bank interest purposes, a year is considered to have 360 days.)

a) 93.89
b) 93.22
c) 94.50

Answer 1

c) 94.50 is your answer

Answer 2

since for the bank purposes, there are 360 days in a year, then 270 days is 270/360 years, or namely 3/4 years.

`\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$1400\\ r=rate\to 9\%\to (9)/(100)\dotfill &0.09\\ t=years\to (270)/(360)\dotfill &(3)/(4) \end{cases} \\\\\\ I=(1400)(0.09)\left((3)/(4) \right)\implies I=94.5`