Question

Find the interest due to the bank on a loan of $1000 at 7.5% for 280 days

Answer 1

Answer:

The interest is $\ 57.53$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=280/365\ years\\ P=\ 1.000\\r=0.075$

substitute in the formula above

$I=\ 1.000(0.075*280/365)$

$I=\ 57.53$