Compute the amount of interest for $2,000 at 3% p.a. for 215 days
Question 7 Answer

a.
$25.34

b.
$35.00

c.
$35.34

d.
$45.34

To calculate the amount of interest for $2,000 at 3% per annum (p.a.) for 215 days, we'll use the formula for simple interest:

\[
\text{Simple Interest} = \frac{P \times R \times T}{100}
\]

Where:
- $ P $ is the principal amount (\$2,000)
- $ R $ is the annual interest rate (3%)
- $ T $ is the time period in years

First, convert the number of days to years. Since there are 365 days in a year:

\[
T = \frac{215}{365} \text{ years}
\]

Now, plug the values into the formula:

\[
\text{Simple Interest} = \frac{2000 \times 3 \times \frac{215}{365}}{100}
\]

Let's calculate this:

\[
\text{Simple Interest} = \frac{2000 \times 3 \times 0.58904}{100}
\]

\[
\text{Simple Interest} = \frac{3534.24}{100} = 35.34
\]

So, the interest is **\$35.34**.

The correct answer is:

**c. \$35.34**

Would you like more details or have any questions? Here are 5 related questions to explore:

1. How is the formula for simple interest derived?
2. How would the interest change if the principal was \$3,000 instead?
3. What would the interest be if the time period was 150 days instead of 215 days?
4. How does the interest calculation differ if compound interest is used instead?
5. What is the effect of changing the interest rate to 5%?

**Tip:** When calculating interest over a period in days, always convert the days to years for accuracy.

Learn how to calculate the amount of interest for $2,000 at an annual rate of 3% over a period of 215 days using the simple interest formula. Get a detailed step-by-step solution and understand the conversion of time from days to years. Suitable for students and professionals interested in financial mathematics.

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