Kenneth borrowed ​$9 comma 501.00 to buy a car. If interest was charged on the loan at 7.26 % p.a. comma how much interest would Kenneth have to pay in 45 ​days?

To calculate how much interest Kenneth would have to pay in 45 days, we can use the formula for simple interest:

\[
\text{Interest} = P \times r \times t
\]

Where:
- $ P $ is the principal amount (the amount borrowed), which is $9,501.00.
- $ r $ is the annual interest rate expressed as a decimal (7.26% = 0.0726).
- $ t $ is the time the money is borrowed for, expressed as a fraction of a year.

Since Kenneth is borrowing the money for 45 days, we express this time as a fraction of a year. There are 365 days in a year, so:

\[
t = \frac{45}{365}
\]

Now we can calculate the interest:

\[
\text{Interest} = 9501 \times 0.0726 \times \frac{45}{365}
\]

Let me calculate that for you.The interest Kenneth would have to pay in 45 days is approximately $85.04.

Would you like more details or have any questions about the calculation?

Here are five related questions to expand your understanding:
1. How would the interest change if the loan term were extended to 90 days?
2. What if the interest rate were compounded monthly instead of using simple interest?
3. How much would Kenneth owe in total (principal + interest) after 45 days?
4. How does the interest rate affect the overall cost of borrowing money?
5. How would the calculation change if the loan was repaid in equal monthly installments?

**Tip:** When dealing with interest rates, always ensure whether they are applied as simple or compound interest for more accurate results.

Kenneth borrowed $9,501.00 to buy a car. If interest was charged on the loan at 7.26% p.a., how much interest would Kenneth have to pay in 45 days?

Discover how to calculate the simple interest on a loan of $9,501 at an annual interest rate of 7.26% over 45 days. This example covers key mathematical concepts such as simple interest, percentages, and time conversion. Suitable for students in Grades 9-10.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation