The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume 365 days in a year.

Question

P= $13000 r=11% t= 60days
Round to the nearest cent

Answer 1

To calculate the simple interest owed, we use the formula:

Simple Interest = (Principal * Rate * Time) / 365

Substituting the given values:

Principal (P) = $13000
Rate (r) = 11% or 0.11 (decimal form)
Time (t) = 60 days

Simple Interest = (13000 * 0.11 * 60) / 365

Calculating this expression:

Simple Interest = 21480 /365

Simple Interest ≈ $58.85

Therefore, the simple interest owed for the use of the money is approximately $58.85.