Question

simple interest calculation for $8000 at 9.5% interest for 120 days

Answer 1

To calculate simple interest, you can use the formula:

\[
\text{Simple Interest} = P \times r \times t
\]

Where:
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the annual interest rate (in decimal),
- \( t \) is the time the money is invested or borrowed for, in years.

Given:
- \( P = 8000 \) dollars,
- \( r = 9.5\% = 0.095 \) (as a decimal),
- \( t = \frac{120}{365} \) years (since interest rates are typically based on a year).

Now we can plug in the values:

1. Convert the days to years:
\[
t = \frac{120}{365} \approx 0.3288 \text{ years}
\]

2. Now calculate the simple interest:
\[
\text{Simple Interest} = 8000 \times 0.095 \times 0.3288
\]
\[
\text{Simple Interest} \approx 8000 \times 0.095 \times 0.3288 \approx 250.14
\]

So, the simple interest for $8000 at a 9.5% interest rate for 120 days is approximately **$250.14**.