The principle 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 360 days in a yr and round answers to the nearest cent.
p=$1000 r=1.5% t=15 mths

Question

The principle 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 360 days in a yr and round answers to the nearest cent.
p=$1000  r=1.5%  t=15 mths

shane_b · Answer

The formula for simple interest is: $$I=Prt$$Where P is the principal, r is the rate and t is the time in years.

For this problem, it will be:$$I=($1000)(0.015)(1+\frac{90}{360})=?$$