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Find the exact interest for $52,600 at 8.5% for 82 days

User JuanPablo
by
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1 Answer

4 votes

We would apply the formula for calculating simple interest which is expressed as

I = PRT

where

I is interest after time t

P is the principal or initial amount

R is the interest rate

T is the time in years

From the information given,

P = 52600

R = 8.5/100 = 0.085

t = 82 days

We need to convert 82 days to years. Recall,

365 days = 1 yr

82 days = 82/365 = 0.2246575

Thus, t = 0.2246575 year

Substituting these values into the formula, we have

I = 52600 x 0.085 x 0.2246575

I = 1004.44

The interest is $1004.44

User Patrick Huber
by
3.7k points