Question

I could really use some help understanding in answering this I keep getting the answer wrong

Answer 1

The general formula to calculate the simple interest is given to be:

`I=P* R* T`

where:

`\begin{gathered} I=\text{ Simple Interest} \\ P=\text{ Loan Amount} \\ R=\text{ Rate in decimals} \\ T=\text{ Number of time periods (yearly)} \end{gathered}`

To adjust for daily time periods, we will divide the rate by 365. Therefore, we have the following parameters:

`\begin{gathered} P=300 \\ R=(4)/(100*365)=(1)/(9152) \\ T=60 \end{gathered}`

Note: We are working with the assumption that the rate is annual, although not clearly stated.

Substituting these parameters into the formula, we have: