Calculate the simple interest due on a 61-day loan of $3,300 if the annual interest rate is 4%. (Round your answer to the nearest cent.)


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

\[
I = P \times r \times t
\]

Where:
- $ I $ is the interest,
- $ P $ is the principal (the loan amount),
- $ r $ is the annual interest rate (as a decimal),
- $ t $ is the time (in years).

Given:
- $ P = 3300 $,
- $ r = 4\% = 0.04 $,
- $ t = \frac{61}{365} \text{ (since there are 365 days in a year)}$.

Now, substituting into the formula:

\[
I = 3300 \times 0.04 \times \frac{61}{365}
\]

\[
I = 3300 \times 0.04 \times 0.167123
\]

\[
I = 3300 \times 0.00668492
\]

\[
I \approx 22.06
\]

Thus, the simple interest due is **$22.06**.

Would you like more details or have any questions?

Here are 5 related questions:
1. How would the interest change if the loan term were 90 days?
2. What would the interest be if the annual rate was 5% instead of 4%?
3. How is simple interest different from compound interest?
4. What would be the total amount to be repaid after 61 days, including interest?
5. How would the calculation differ if the loan term was in months instead of days?

**Tip:** The more frequent the time period in a loan calculation (days vs. months), the more precise the interest calculation will be.

Calculate the simple interest due on a 61-day loan of $3,300 if the annual interest rate is 4%. (Round your answer to the nearest cent.)

Learn how to calculate the simple interest on a 61-day loan of $3,300 with an annual interest rate of 4%. This problem involves key concepts such as simple interest calculation, time conversion, and percentage. Suitable for students in Grades 6-8, this example provides a step-by-step solution.

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