Question

Find the simple interest on $34,600 at 14.25% for 199 days. Assume 360 days in a year and 30 days in a month

Answer 1

To calculate simple interest, we use the formula:

Simple Interest (SI) = (Principal × Rate × Time) / (100 × Number of days in a year)

Given data:
Principal (P) = $34,600
Rate (R) = 14.25% (convert to decimal by dividing by 100: 14.25/100 = 0.1425)
Time (T) = 199 days
Number of days in a year = 360

Let's calculate the simple interest:

SI = (34600 × 0.1425 × 199) / (100 × 360)
SI = (492945) / 360
SI = $1,369.29

So, the simple interest on $34,600 at 14.25% for 199 days is approximately $1,369.29.

Answer 2

Explanation:

To calculate simple interest, we use the formula:

Interest = Principal × Rate × Time

Where:

Principal = $34,600

Rate = 14.25% (expressed as a decimal, 14.25% = 0.1425)

Time = 199 days / 360 (since we assume 360 days in a year)

Let's calculate the interest:

Interest = $34,600 × 0.1425 × (199/360)

Interest = $34,600 × 0.1425 × 0.5528

Interest = $2,578.76

So, the simple interest on $34,600 at 14.25% for 199 days is approximately $2,578.76.