Question

Determine the simple interest. The rate is an annual rate. Assume 360 days in a year.

p = $390, r=6.25%, t = 2.75 years
HERE
The simple interest is $0
(Round to the nearest cent as needed.)

Answer 1

9514 1404 393

Answer:

$67.03

Explanation:

The interest formula is ...

I = Prt

Using the given values, we have ...

I = $390·0.0625·2.75 = $67.03125 ≈ $67.03

The simple interest is $67.03.

_____

Additional comment

Here, the time period is given in years. The number of days per year is only relevant if the time period is given as a number of days or other sub-unit of a year.