How much simple intrest would 1,000 earn in 275 days at an intrest rate of 4.21 percent?
To calculate the simple interest earned, you can use the formula:
Simple Interest = Principal * Interest Rate * Time
Where:
- Principal is the initial amount of money
- Interest Rate is the annual interest rate as a decimal
- Time is the duration in years
First, convert the time from days to years. Since there are 365 days in a year:
Time = 275 days / 365 days/year = 0.7534 years
Now you can plug the values into the formula:
Principal = $1,000
Interest Rate = 4.21% or 0.0421 (as a decimal)
Time = 0.7534 years
Simple Interest = $1,000 * 0.0421 * 0.7534
Simple Interest ≈ $31.598
Therefore, the simple interest earned on $1,000 over 275 days at an interest rate of 4.21% would be approximately $31.598.