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How much simple interest would be paid on a loan of $10,580 at 16.69% for 36 days?

User Can Bal
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Final answer:

The simple interest paid on a loan of $10,580 at an annual rate of 16.69% for 36 days is approximately $173.80, calculated using the formula I = PRT.

Step-by-step explanation:

To calculate the simple interest paid on a loan, you can use the formula I = PRT, where I is the interest, P is the principal amount, R is the interest rate, and T is the time in years. In this case, the principal amount is $10,580, the interest rate is 16.69% (or 0.1669 when converted to decimal form), and the time is 36 days (which is 36/365 years).

When you plug these values into the formula, it looks like this:

I = $10,580 × 0.1669 × (36/365)

The calculated interest is:

I = $10,580 × 0.1669 × 0.09863

I = $173.80 (rounded to two decimal places)

Therefore, the total simple interest paid on a loan of $10,580 at 16.69% for 36 days is approximately $173.80.

User Nitzan Tomer
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