Question

Find the exact interest, to the nearest cent. (P=(P= principal, R=R= rate, T=T= time ))

PRT Interest $22,5009%90 days\begin{array}{lllllllll} \boldsymbol{P} & \boldsymbol{R} & \boldsymbol{T} & \text { Interest }\\ \$ 22,500 & 9 \% & 90\ \text{days} \end{array}

Solution

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Answered 1 year ago
Answered 1 year ago
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From the given, we have

P=$22500R=9%T=90365=1873\begin{aligned} P&=\$22500\\ R&=9\%\\ T&=\frac{90}{365}\\ &=\frac{18}{73}\\ \end{aligned}

Note that we divide the given time in days by 365 to get the time in years. This is because a year consists of 365 days.

We then solve for the interest (II) using the following formula

I=PRTI=PRT

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