Question

determine the simple interest. the rate is an annual rate. assume 360 days in a year.
p = $300, r = 4.75%, t = 3.25 years

the simple interest is $\square.
(round to the nearest cent as needed.)

Explanation:

Step1: Convert rate to decimal

$r = 4.75\% = \frac{4.75}{100} = 0.0475$

Step2: Apply simple interest formula

The simple interest formula is $I = p \times r \times t$. Substitute values:
$I = 300 \times 0.0475 \times 3.25$

Step3: Calculate intermediate product

First compute $300 \times 0.0475 = 14.25$

Step4: Compute final interest

$I = 14.25 \times 3.25 = 46.3125$

Step5: Round to nearest cent

Round $46.3125$ to two decimal places: $46.31$

Answer:

$\$46.31$