Question

Find the interest on the loan using bankers ruleP= $400, r= 11.7%, t= 240 days

Answer 1

The interest is $30.77

EXPLANATION :

The interest formula is :

`I=Prt`

where :

P = principal amount

r = rate of interest

t = time in years

From the problem, we have :

P = $400

r = 11.7% or 0.117

t = 240 days

Convert 240 days into years

`240days*(1yr)/(365days)=0.6575yrs`

Using the formula above :

`\begin{gathered} I=400(0.117)(0.6575) \\ I=30.77 \end{gathered}`