Question

determine the simple interest. (the rate is an annual rate unless otherwise stated. assume 360 days in one year.) p = $850, r = 5.75%, t = 30 days the simple interest is $\square$. (round to the nearest cent as needed.)

Explanation:

Step1: Convert rate to decimal

$r = 5.75\% = 0.0575$

Step2: Convert time to annual fraction

$t = \frac{30}{360} = \frac{1}{12}$

Step3: Apply simple interest formula

Simple Interest $I = p \times r \times t$
$I = 850 \times 0.0575 \times \frac{1}{12}$

Step4: Calculate and round result

$I = \frac{850 \times 0.0575}{12} = \frac{48.875}{12} \approx 4.07$

Answer:

$4.07$