Trevor's bank pays 1.94% simple interest. Of his principal is $241, and he left all of it in his account for 54 days. How much i

Question

Elanso [62]

3 years ago

8

Trevor's bank pays 1.94% simple interest. Of his principal is $241, and he left all of it in his account for 54 days. How much i

nterest will Trevor earn?

Mathematics

1 answer:

iren2701 [21] · Answer 1 · 2022-08-18T02:09:49+03:00

9514 1404 393

Answer:

$0.70

Step-by-step explanation:

The interest is computed using the formula ...

I = Prt

where r is the annual rate, and t is the time in years. Banks compute interest using "ordinary interest", which assumes a 360-day year. Trevor's interest is ...

I = $241(0.0194)(54/360) = $0.70