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.
(Round the nearest cent)
P= $13000 r=8% t= 60days
To calculate the simple interest owed, we can use the formula:
Simple Interest = Principal (P) * Rate (r) * Time (t)
First, let's convert the rate from a percentage to a decimal by dividing it by 100:
r = 8% = 8/100 = 0.08
Now, substitute the given values into the formula:
Simple Interest = $13000 * 0.08 * 60
Calculate:
Simple Interest = $6240
Therefore, the simple interest owed for the use of the money is $6240.