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​ = ​$6000​, r​ = 1.5​%, t​ = 15 months

Answer 1

To find the simple interest owed, we can use the formula:

Simple Interest = P * r * t

First, we need to convert the time period from months to years:

15 months = 15/12 years = 1.25 years

Now we can plug in the values into the formula:

Simple Interest = $6000 * 0.015 * 1.25 = $112.50

Therefore, the simple interest owed for the use of the money is $112.50.