find the simple interest. Assume a 360-day year and a 30-day month. 18000 at 5%; loan made on September 12 and due November 27.
The length of the loan is 45 days. That is 1.5 months (1/8 year). The simple interest owed would be
18,000*[(0.05)/8]
= 112.50
Felicia invested money at an interest rate of 4% after six months ,she had earned 90.00 interest ,how much money did Felicia invest
To calculate the simple interest for a loan, we need to know the principal amount, the interest rate, and the time period.
In this case:
Principal amount (P) = $18000
Interest rate (R) = 5% (or 0.05 as a decimal)
Time period (T) = From September 12 to November 27
To find the time period, we need to calculate the number of days between the two dates. Since we assume a 360-day year and a 30-day month, we can break it down as follows:
September 12 to October 12 = 30 days
October 12 to November 12 = 30 days
November 12 to November 27 = 15 days
Adding these up, we have:
30 + 30 + 15 = 75 days.
Now, we can calculate the simple interest using the formula:
Simple Interest = (Principal amount x Interest rate x Time period) / (Total days in a year)
In this case:
Simple Interest = (18000 x 0.05 x 75) / 360
Calculating this, we have:
Simple Interest = 375
Therefore, the simple interest on a loan of $18,000 at 5% for the period from September 12 to November 27 is $375.