Answer:
a) Interest owed after 78 days = $110.01
b) Amount owed after 78 days = $14410.01
Step-by-step explanation:
a) The formula for calculating simple interest is expressed as
I = PRT
Where
I represents the interest earned after T years
P represents the principal or initial amount
R represents the interest rate
T represents the time in years
From the information given,
R = 3.6% = 3.6/100 = 0.036
P = 14300
T = 78 x 1/365 = 78/365
By substituting these values into the formula,
I = 14300 x 0.036 x 78/365
I = 110.01
Interest owed after 78 days = $110.01
b) Amount owed after 78 days = principal + interest
Amount owed after 78 days = 14300 + 110.01 = 14410.01
Amount owed after 78 days = $14410.01