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28 votes
Calculate the simple interest rate do in dollars on a 45 day loan of $3200 if the interest rate is 9% use 360 days in one year

User A Jar Of Clay
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1 Answer

10 votes
10 votes

The formula for calculating simple interest is expressed as

I = PRT

where

I represents interest

P represents principal or initial amount

R represents interest rate

T = time in years

From the information given,

P = 3200

R = 9/100 = 0.09

T = 45 days. We would convert it to years. Since there are 360 days in one year,

T = 45/360 = 0.125

By substituting these values into the formula,

I = 3200 x 0.09 x 0.125 = 36

Simple interest = $36

Total amount = principal + interest

Total amount = 3200 + 36 = $3236

User Baltimark
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