Question

Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p=​$586.21​, r=6.3​%, t=83 days

Answer 1

so we're assuming there are 360 days in a year, so 83 days is really just 83/360 of a year, so

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$586.21\\ r=rate\to 6.3\%\to (6.3)/(100)\dotfill &0.063\\ t=years\dotfill &(83)/(360) \end{cases} \\\\\\ I = (586.21)(0.063)((83)/(360)) \implies I \approx 8.51`