Question

A sum of 20,000 pesos in invested from April 9 to December 3 of the same year at 15% simple interest. Find the interest earned using the four method.

Answer 1

Data:

Principal: 20,000 pesos

Rate: 15%

Time: from April 9 to December 3

Time in years:

`\begin{gathered} 7\text{months}\cdot\frac{1\text{year}}{12\text{monts}}=(7)/(12)\text{years} \\ \\ 24\text{days}\cdot\frac{1\text{year}}{365\text{days}}=(24)/(365)\text{years} \\ \\ \\ \text{Total:} \\ (7)/(12)+(24)/(365)=(2555+288)/(4380)\approx0.65years \end{gathered}`

Using the time in years and the interest rate in decimal you get the next;

`\begin{gathered} I=P\cdot R\cdot T \\ \\ I=20,000\cdot0.15\cdot0.65 \\ \\ I=1,950 \end{gathered}`Then, the interest earned in that time is 1,950 pesos