Find the simple interest (in dollars) due on a 39-day loan of $950 if the annual simple interest rate is 3.7%. Round to the nearest cent. (Use 360 days in 1 year.)

Answer 1

To find the simple interest on a 39-day loan using an annual interest rate of 3.7%, we first need to calculate the daily interest rate.

Daily Interest Rate = Annual Interest Rate / Number of days in a year
Daily Interest Rate = 3.7% / 360
Daily Interest Rate = 0.037 / 360
Daily Interest Rate = 0.0001027777

Next, we calculate the simple interest:
Simple Interest = Principal x Daily Interest Rate x Number of days
Simple Interest = $950 x 0.0001027777 x 39
Simple Interest = $950 x 0.004006667
Simple Interest = $3.81

Therefore, the simple interest due on a 39-day loan of $950 with an annual interest rate of 3.7% is $3.81.