How much interest would john pay for a 30 day loan of 600 dollars at 8%?
use
I = PxRxT
= 600(.08)(30/365)
= ...
To calculate the amount of interest John would pay for a 30-day loan of $600 at an interest rate of 8%, we can use the simple interest formula:
Interest = Principal × Rate × Time
Where:
- Principal is the initial amount borrowed ($600),
- Rate is the interest rate per period (8% or 0.08),
- Time is the duration of the loan in years (30 days / 365).
Let's calculate the interest:
Step 1: Convert the time from days to years:
Time = 30 days / 365 days ≈ 0.0822 years
Step 2: Calculate the interest:
Interest = $600 × 0.08 × 0.0822 ≈ $3.92
Therefore, John would pay approximately $3.92 in interest for a 30-day loan of $600 at an 8% interest rate.