Question

HELPPPPPPPPP

Use the simple interest formula to find the missing value. Rates are annual rates. Assume 360 days per year and 30 days per month.

p = ?, r = 4.5%, t = 10 days, i = $26.68

A. p = $21,344.00

B. p = $711.47

C. p = $7114.67

D. p = $21,670.09

Answer 1

Simple interest Interset formula is given as follows:

I =prt

=> P = I/RT
where
I = interest accrued
p = principal
r = rate per year

Given
I = 26.68
t= 10 days
I= 4.5% per year.

4.5% is the rate per year:
=> Rate per day is 4.5%/(360)
= 0.045/360

Therefore P = 26.68/[(0.045/360)] *10 = (26.68 8 360)/(0.045*10) =21344

Therefore the answer is A

A. p = $21,344.00