Question - Calculating Simple Interest for a Loan
mathotherinterest rate calculationcalculating simple interestloan interest calculationsimple interest formula
Solution:
To calculate the simple interest, you can use the formula:Simple Interest (SI) = P * r * t,where P = principal amount, r = interest rate per period, and t = time in periods.The values given are:P = $681,r = 0.054% per day,t = 3 months.Since the question assumes 360 days in a year, we can find the time in days.3 months = 3 * (360/12) days = 3 * 30 days = 90 days.Next, we convert the daily interest rate into a decimal:r = 0.054% = 0.054/100 = 0.00054.Now, we can calculate the simple interest:SI = P * r * t,SI = $681 * 0.00054 * 90.SI = $33.084.Rounding to the nearest cent, the simple interest would be:$33.08.Therefore, the simple interest on $681 at 0.054% per day for 3 months is $33.08.
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