Length real-world example
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Answer:
The interest charged is $7.49.
After 29 days, Travis paid a total of $607.49
Step-by-step explanation:
Travis obtained a cash advance for $600.
The interest rate is 0.04305% per day.
The simple interest rate formula is given by:
Where <em>I</em> is the interest, <em>P</em> is the initial amount, <em>r</em> is the rate, and <em>t</em> is the time (in this case in days).
Our initial amount <em>P</em> is $600.
Our interest rate <em>r</em> is 0.04305% or (moving the decimal two places to the left) 0.0004305.
Since Travis repaid the loan after 29 days, our <em>t</em> is 29.
Hence, our interest is:
So, the interest charged is about $7.49.
So, after 29 days, Travis paid a total of the original $600 plus an interest of $7.49 for a total of $607.49