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=11% t= 60days
Round to the nearest cent
To calculate the simple interest owed, we use the formula:
Simple Interest = (Principal * Rate * Time) / 365
Substituting the given values:
Principal (P) = $13000
Rate (r) = 11% or 0.11 (decimal form)
Time (t) = 60 days
Simple Interest = (13000 * 0.11 * 60) / 365
Calculating this expression:
Simple Interest = 21480 /365
Simple Interest ≈ $58.85
Therefore, the simple interest owed for the use of the money is approximately $58.85.