Question

Using Simple Interest, calculate the amount of interest earned if:

Principle=$5,000
Interest Rate=12%
Time=55 days

Answer 1

Explanation:

P * R * T =I

(5000) * (.12) * (55/360) = I

(600) * ( 11/72)

(600 *11) /72 = 6600/72 =$91.67

Note 55/360 was simplified by 5 to get 11/72. and 360 days in an legal bank year