On 12 february 2009,sally invested $2000 in a bank and received an amount or $2040 on 23 june 2009.calculate the simple interest rate offered by the bank
You will have to count the number of days from Feb 12 to June 23, I will leave that up to you and label it 'days'
in I = PRT, your I = 40, R = ??, T = days/365 , P = 2000
40 = 2000(R)(days/365)
R = 40(365)/(2000(days)) =
your R will be a decimal, I will assume you know how to change that into a percent.
Here is a "between dates" calculator. Notice it counts the first day, but not the last day. Check how your text wants you do it it.
https://www.timeanddate.com/date/durationresult.html?m1=02&d1=12&y1=2017&m2=06&d2=23&y2=2017
To calculate the simple interest rate offered by the bank, we need to use the formula:
Simple Interest = Principal * Interest Rate * Time
Given that Sally invested $2000 and received $2040 on June 23, 2009, we need to determine the time elapsed.
To calculate the time, we subtract the investment date from the return date. In this case, the time elapsed is from February 12, 2009, to June 23, 2009.
To calculate the time in days, we follow these steps:
1. Find the number of days in each month (February, April, June) between the two dates.
- February: 28 days
- March: 31 days
- April: 30 days
- May: 31 days
- June: 23 days (up to the 23rd)
2. Sum up the number of days in each month:
28 + 31 + 30 + 31 + 23 = 143 days
Now, we can calculate the interest rate using the formula:
Interest Rate = (Simple Interest / Principal) * (365 / Time)
Substituting the values we have:
Simple Interest = $2040 - $2000 = $40
Principal = $2000
Time = 143 days
365 = number of days in a year
Interest Rate = ($40 / $2000) * (365 / 143)
Interest Rate ≈ 0.0198
Therefore, the simple interest rate offered by the bank is approximately 0.0198 or 1.98%.