Question

Determine the interest on the following notes: (Use 360 days for calculation.) (a) $5,000 at 6% for 90 days. $Enter the interest in dollars (b) $800 at 9% for 5 months. $Enter the interest in dollars (c) $6,000 at 8% for 60 days. $Enter the interest in dollars (d) $1,600 at 7% for 6 months. $Enter the interest in dollars

Answer 1

Answer:

(a) $75

(b) $30

(c) $80

(d) $56

Explanation:

(a) Principal amount p = $5000

Rate of interest r = 6 %

Time t = 90 days $=\frac{90}{360}=0.25years$

We know that simple interest $=\frac{principal\ amount\times rate\times time}{100}=\frac{5000\times 6\times 0.25}{100}= 75$

(b) Principal amount p = $800

Rate of interest r = 9 %

Time t = 5 month $=\frac{5}{12}=0.4166years$

We know that simple interest $=\frac{principal\ amount\times rate\times time}{100}=\frac{800\times 9\times 0.4166}{100}= 30$

(c) Principal amount p = $6000

Rate of interest r = 8 %

Time t = 60 days $=\frac{60}{360}=0.1666years$

We know that simple interest $=\frac{principal\ amount\times rate\times time}{100}=\frac{6000\times 8\times 0.1666}{100}= 80$

(d) Principal amount p = $1500

Rate of interest r = 7 %

Time t = 6 months $=\frac{6}{12}=0.5years$

We know that simple interest $=\frac{principal\ amount\times rate\times time}{100}=\frac{1600\times 7\times 0.5}{100}= 56$