Question

the principal P is borrow ar the 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 and round answer in the nearest cent.1. P=$2000R=7%T=1 year2. P=$110R=5%T=2 year3. P=400R=7%T=2 months 4. P=$15500R=7%T=120 days

Answer 1

we know that

The simple interest formula is equal to

$I=P(rt)$

$I=P\mleft(rt\mright)$

Part 1

we have

P=$2000

R=7%=7/100=0.07

T=1 year

substitute

$\begin{gathered} I=2,000(0.07\cdot1) \\ I=\ 140 \end{gathered}$

Part 2

we have

P=$110

R=5%=5/100=0.05

T=2 year

$\begin{gathered} I=110(0.05\cdot2) \\ I=\ 11 \end{gathered}$

Part 3

we have

P=400

R=7%=7/100=0.07

T=2 months =2/360

substitute

$\begin{gathered} I=400(0.07\cdot\frac{2}{360}) \\ I=\ 0.16 \end{gathered}$

Part 4

we have

P=$15500

R=7%=7/100=0.07

T=120 days=120/360

$\begin{gathered} I=15500(0.07\cdot\frac{120}{360}) \\ I=\ 361.67 \end{gathered}$