Question

Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p = $502.45,r=5.3%,t = 53days The simple interest is ​$ ​(Do not round until the final answer. Then round to the nearest cent as​ needed.)

Answer 1

First, converting R percent to r a decimal
r = R/100 = 5.3%/100 = 0.053 per year.

Putting time into years for simplicity,
53 days / 360 days/year = 0.147222 years.

Solving our equation:
A = 502.45(1 + (0.053 × 0.147222)) = 506.3704997767
A = $506.37

The total amount accrued, principal plus interest, from simple interest on a principal of $502.45 at a rate of 5.3% per year for 0.147222 years (53 days) is $506.37.