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How much simple interest would be paid on a loan of $8140 at 6.12% for 232 days?

User Haoyu Wang
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Final answer:

To calculate the simple interest on a $8140 loan at 6.12% for 232 days, convert the interest rate to a daily rate, calculate the time in years, and apply the simple interest formula to get approximately $314.89 in simple interest.

Step-by-step explanation:

To calculate the simple interest paid on a loan of $8140 at an interest rate of 6.12% for 232 days, you can use the simple interest formula: Interest (I) = Principal (P) × Rate (R) × Time (T).

First, convert the annual interest rate to a daily rate by dividing by 365 (assuming a non-leap year): daily interest rate = 6.12% / 365 = 0.0167671%.

Then, convert the time period from days to years: time in years = 232 / 365 = 0.6356164 years.

Now, apply these values to the formula:
Interest (I) = $8140 × 0.0612 × 0.6356164 = $314.89 approximately.

The borrower would pay around $314.89 in simple interest over the 232-day period.

User Raiju
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