using the exact interest method 365 days, find the amount of interest on the following loans, principal is $1,700, the rate is 121/2 percent, time days is 33. what is the exact interest
I = PRT
I = 1700 * 0.125 * 0.0904
19.21
To find the exact interest using the exact interest method for 365 days, you will need to use the formula:
Exact Interest = (Principal * Rate * Time) / (100 * 365)
Given:
Principal = $1,700
Rate = 12 1/2 percent (which is equivalent to 12.5% or 0.125)
Time = 33 days
Using the formula, plug in the values:
Exact Interest = (1700 * 0.125 * 33) / (100 * 365)
Exact Interest = (21250) / (36500)
Exact Interest ≈ $0.5815 (rounded to four decimal places)
Therefore, the exact interest on the loan is approximately $0.5815.