What interest will be due on a loan of $3,000 advanced on March 31 and due Sept 4 of the same year if simple interest is charged at 7.75%?
count your days, suppose you end up with n days
I = 3000(.0775)(n/365) = ....
To calculate the interest on a loan using simple interest, you need to know the principal amount (loan amount), the interest rate, and the time period.
In this case:
Principal (loan amount): $3,000
Interest rate: 7.75% (expressed as a decimal, 0.0775)
Time period: From March 31 to September 4 of the same year
To calculate the time period in terms of the number of days, you can subtract the starting date from the ending date. In this case, the time period is 157 days (from March 31 to September 4, including both the starting and ending days).
Now, you can use the simple interest formula to find the interest:
Interest = Principal * Interest rate * Time period
Interest = $3,000 * 0.0775 * 157
Calculating the above expression will give you the interest due on the loan.
To calculate the interest on a loan, we need to know the principal amount, the interest rate, and the time period. In this case, the principal amount is $3,000 and the interest rate is 7.75%. The time period is from March 31 to September 4 of the same year.
First, let's calculate the time difference between March 31 and September 4.
March 31 to April 30 is 30 days.
May 1 to June 30 is 61 days.
July 1 to August 31 is 62 days.
September 1 to September 4 is 4 days.
So, the total number of days from March 31 to September 4 is: 30 + 61 + 62 + 4 = 157 days.
Now, let's convert the number of days to years by dividing it by 365 (assuming a year consists of 365 days):
157 days / 365 days = 0.43 years (rounded to two decimal places).
Using the formula for simple interest:
Interest = Principal × Rate × Time
Interest = $3,000 × 7.75% × 0.43
Let's calculate the interest:
Interest = $3,000 × 0.0775 × 0.43
Interest = $100.725
Rounding to the nearest cent, the interest on the loan would be approximately $100.73.