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= $13000 r=8% t= 60days
To find the simple interest owed, we can use the formula:
Simple Interest = (Principal * Rate * Time) / 365
Given:
Principal (P) = $13,000
Rate (r) = 8% = 0.08 (expressed as a decimal)
Time (t) = 60 days
Let's plug in these values into the formula:
Simple Interest = (13,000 * 0.08 * 60) / 365
Simplifying this:
Simple Interest = (10,400 * 60) / 365
Simple Interest = 624,000 / 365
Simple Interest ≈ $1,709.59
Therefore, the simple interest owed for borrowing $13,000 at a rate of 8% for 60 days is approximately $1,709.59.