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Find the simple interest. Assume a 360-day year. $7236.15 at 4.25% for 30 days

User Kdt
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Final answer:

The simple interest on $7236.15 at a 4.25% annual rate for 30 days is approximately $25.35.

Step-by-step explanation:

To find the simple interest accrued from a principle of $7236.15 at an annual interest rate of 4.25% for 30 days, assuming a 360-day year, we use the simple interest formula:

Simple Interest = Principal × Rate × Time

First, we convert the annual interest rate of 4.25% into a decimal by dividing it by 100:

4.25% ÷ 100 = 0.0425

Next, we convert the period of time from days to years by dividing the number of days by 360:

30 days ÷ 360 days/year = 1/12 year

Now we apply the values to the formula:

Simple Interest = $7236.15 × 0.0425 × 1/12

To calculate the interest:

Simple Interest = $7236.15 × 0.0425 × 0.083333...

After performing the multiplication:

Simple Interest = $25.34625 (approximately)

Therefore, the simple interest accrued over 30 days on $7236.15 at 4.25% interest rate is approximately $25.35.

User Amit On
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