We would apply the formula for calculating simple interest which is expressed as
I = PRT
where
I is the interest
P is the principal or initial amount
R is the interest rate
T is the time in years
From the information given,
P = 50000
R = 8.75/100 = 0.0875
T = 200
When dealing with ordinary interest, the number of days in a year is 360. We would convert 200 days to years. We have
360 days = 1 yr
200 days = 200/360 = 0.56
Thus,
T = 0.56
By substituting these values into the formula, we have
I = 50000 x 0.0875 x 0.56
I = 2450
The ordinary interest is $2450