THE PRINCIPAL IS BORROWED AT SIMPLE INTREST RATE OF R FOR A PERIOD OF TIME t. Find the simple interest rate owned for the time use of the money. Assume 360 days in a year.

Question

THE PRINCIPAL IS BORROWED AT SIMPLE INTREST RATE OF R FOR A PERIOD OF TIME t. Find the simple interest rate owned for the time use of the money. Assume 360 days in a year.
P=$5000, R=8.5% t =9 months.

Ms. Sue · Answer

I = PRT I = 5000 * 0.085 * 0.75