Question

Benson Automotive earned $69.46 interest on a $9,400 deposit in an account paying 4.5%. Find the number of days that the funds were on deposit. Round to the nearest whole dayLearning simple interest.

Answer 1

The rate given is 4.5%, but it didn't say theperiod of the intereset. In this case, we normally implies that the interest is annual.

The equation for simple interest is as follows:

`I=P\cdot r\cdot t`

Where P is the princiapal value, r is the rate and t is the time period in years, because the rate is annual.

We want to calculate t, so we can solve for it:

`t=(I)/(P\cdot r)`

Ans we substitute the values:

`t=(69.46)/(9400\cdot4.5\%)=(69.46)/(9400\cdot0.045)=0.164208\ldots`

That is, 0.164208... years.

In one normal year, we have 365 days, so the time in days is:

`0.164208\ldots\cdot365=59.935\ldots\approx60`

So, the answer is 60 days.