https://file.aiquickdraw.com/mathbot/file/172744757764075ul1d25.jpg

To find the amount of interest on a loan using the exact interest method, we can apply the simple interest formula:

\[
I = P \times r \times \frac{t}{365}
\]

Where:
- $ I $ is the interest
- $ P $ is the principal (the loan amount), which is $ 6,000 $
- $ r $ is the annual interest rate (5% = 0.05)
- $ t $ is the number of days (90 days in this case)

Let's calculate the interest step by step.The interest on a loan of $6,000 at 5% interest for 90 days, using the exact interest method, is **$73.97**.

Would you like more details or have any questions? Here are some related questions to deepen your understanding:

1. How would the interest change if the loan period was extended to 180 days?
2. What would the interest be if the annual interest rate was 7% instead of 5%?
3. How does the exact interest method differ from the ordinary interest method?
4. What happens to the interest if we use a leap year (366 days) instead of 365 days?
5. How does the principal affect the total interest amount?

**Tip:** When calculating interest, always check whether the interest is compounded or simple—this can significantly affect the outcome!

Find the amount of interest (in $) on a loan of $6,000, at 5% interest, for 90 days using the exact interest method.

Learn how to calculate simple interest on a $6,000 loan at 5% interest for 90 days using the exact interest method. This problem involves applying the formula I = P × r × (t/365) to find the interest amount, perfect for students in Grades 9-11.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation