Question

Kristi Yang borrowed $17,000. The term of the loan was 75 days, and the annual simple interest rate was 7.4%. Find the simple interest due on the loan. Round your answer to two decimal places.

Answer 1

Answer:

25.00

Step-b2y-step explanation:

2.500

Answer 2

The simple interest due on the loan amount is  $17,258.49.

What is simple interest?

Simple interest is a method used to calculate the share of hobby paid on a sum over a fixed time period at a set rate. The main quantity stays consistent in easy interest. simple interest is a truthful and smooth technique for calculating interest in cash

Borrowed amount = $ 17,000

The loan days term

rate of annual simple interest = 7.4 %

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 7.4%/100 = 0.074 per year.

Putting time into years for simplicity,

75 days / 365 days/year = 0.205479 years.

Solving our equation:

A = 17000(1 + (0.074 × 0.205479)) = 17258.492582

A = $17,258.49

A = $17,258.49

I = A - P = $258.49

The total amount accrued, principal plus interest, from simple interest on a principal of $17,000.00 at a rate of 7.4% per year for 0.205479 years (75 days) is $17,258.49.

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