The principal 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 365 days in a year.
P=$13,000, r=7%, t=120days
To find the simple interest, we can use the formula:
Simple Interest = Principal (P) * Rate of interest (r) * Time period (t)
Given:
Principal (P) = $13,000
Rate of interest (r) = 7% = 7/100 = 0.07
Time period (t) = 120 days
Plugging in the values into the formula:
Simple Interest = $13,000 * 0.07 * 120 = $10,920
Therefore, the simple interest owed for the use of the money is $10,920.