Question

a $40,000 loan at 4 percent dated june 10 is due to be paid on October 11. What is the amount of simple interest? Show all work.

Answer 1

right out the simple interest formula.

Answer 2

i=P*r*t?

Answer 3

yes, that is correct.

Answer 4

now substitute the values of p(principle), r(rate) is in decimal and t(time) in years.

Answer 5

I=40,000*.04*123

Answer 6

where does the 123 come from?

Answer 7

the difference from June 10 and October 11.

Answer 8

ok, if you calculated that, I'm trusting you did that correctly. The last part would be times 123/366 because it is in years, and there is 365 days in a year.

Answer 9

ok

Answer 10

then you should get your answer.

Answer 11

ok gotcha

Answer 12

medal if I helped you thanks :)