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 360 days in a year. P=$4000, r=5% t= 1 year

Answer 1

9514 1404 393

Answer:

$200

Explanation:

The interest is given by ...

I = Prt

I = ($4000)(0.05)(1) = $200

The simple interest owed is $200.