Question

Choose the correct answer. Find the interest due on $800 at 12% for 120 days.

Answer 1

Answer:

$32

Step-by-step explanation:

To find the interest due, you will use an interest formula.

The formula will be: Interest= P · r · $\frac{n}{365}$

P represents our principal amount, R is our rate of interest, and N is the number of days (out of 365 which is a year).

In this situation,

$800 will be our P amount, 12% will be our R, and 120 will be our N.

This will give us:

Interest= 800 · 0.12 · $\frac{120}{365}$

Before we go on, I would like to clarify 12% goes out of a hundred. To find the decimal form, you will divide 12 over 100. By doing this, you will find yourselves having 0.12 (our rate of interest).

When you solve our new formula equation, you will get a long decimal number consisting of 31.5616... Remember a decimal will be rounded if it is 5 or above, if it less than 5 it will not be rounded. In this case, we got 31.5, so we round; getting us 32.

Our answer will then be $32