Question

The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume there are 360 days in a year. P​ = ​$8000​, r​ = 3.5​%, t​ = 15 months

Answer 1

simple interest is 8350 for 15 months

Explanation:

Explanation:-

The simple interest formula A = P (1 + r t)

where 'P' is the principal amount of money to be invested at an interest Rate' r % per period for' t ' number of time periods.

Given data The principal P is borrowed at a simple interest rate r for a period of time t.

Given principal amount P​ = ​$8000

simple interest rate r​ = 3.5​%

period of time 't' = 15 months

Calculation:-

Putting time into years

`(15months)/(12 months/year) = 1.25 years`

t = 1.25 years

r = 3.5%

r = 0.035 per year

now equation is A = P (1 + r t)

A = 8000 ( 1+ ( 0.035 X 1.25)

A = 8000 X 1.04375

A = 8350

simple interest is 8350 for 15 months.