Find the simple interest on the following loan. Assume 365 days in a year.
​$34700 at 14.25 % for 191 days

To find the simple interest on a loan, we use the formula:

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

where:
- $ P $ is the principal amount (the initial amount of money),
- $ R $ is the rate of interest per year,
- $ T $ is the time the money is borrowed for, in years.

Given:
- $ P = 34700 $ dollars,
- $ R = 14.25\% $ per annum,
- $ T = \frac{191}{365} $ years.

Let's calculate the simple interest.

\[
\text{Simple Interest} = \frac{34700 \times 14.25 \times \frac{191}{365}}{100}
\]

Now, let's compute this.The simple interest on the loan is approximately $2,587.53.

Do you have any questions or would you like more details? Here are some related questions:

1. How would the interest change if the loan period were extended to 365 days?
2. What would the simple interest be if the interest rate was 12% instead of 14.25%?
3. How is the simple interest formula different from the compound interest formula?
4. What is the total amount to be paid back at the end of the loan period?
5. How would the interest calculation differ if the loan were calculated using a 360-day year?

**Tip:** Always ensure you know whether interest is calculated on a 360-day or 365-day basis, as this can slightly affect the result.

Learn how to calculate simple interest on a loan of $34,700 at an annual interest rate of 14.25% for 191 days. This problem involves applying the simple interest formula and converting days to years. Suitable for high school students and anyone interested in financial mathematics.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation