Raimo borrowed $750 from Chris on October 30 and agreed to repay the debt with simple interest at the rate of 12.3% on May 10. How much interest was owed on May 10? Assume that February has 28 days.
22.40
To calculate the interest owed on May 10, we need to determine the time period for which the interest is being calculated.
Step 1: Calculate the number of days from October 30 to May 10.
To calculate the number of days, we need to consider the number of days in each month.
October has 31 days
November has 30 days
December has 31 days
January has 31 days
February has 28 days
March has 31 days
April has 30 days
May has 10 days
Adding up all the days, we get:
31 + 30 + 31 + 31 + 28 + 31 + 30 + 10 = 202 days
Step 2: Convert the number of days to a fraction of a year.
To calculate the interest, we need the time in years. To do this, we divide the number of days by 365 (assuming it's not a leap year).
202 days / 365 days = 0.5534
Step 3: Calculate the interest owed.
The interest formula for simple interest is:
Interest = Principal x Rate x Time
In this case:
Principal = $750
Rate = 12.3% or 0.123
Time = 0.5534
Interest = $750 x 0.123 x 0.5534
Interest = $51.3201
Therefore, the interest owed on May 10 is approximately $51.32.