Question

now substitute the appropriate values in the formula and simplify.
(i = p\times r\times t)
(=$545\times0.1404\times\frac{5}{12})
(approx$31.88)
therefore, the simple interest on $545 at 0.039% per day for 5 months is $31.88.

Explanation:

Step1: Verify annual interest rate

Daily rate = 0.039% = $0.00039$. Annual rate = $0.00039 \times 360 = 0.1404$ (using 360-day year for simple interest)

Step2: Substitute into simple interest formula

Simple interest formula: $i = p \times r \times t$, where $p=\$545$, $r=0.1404$, $t=\frac{5}{12}$
Expression: $i = 545 \times 0.1404 \times \frac{5}{12}$

Step3: Calculate step-by-step

First compute $545 \times 0.1404 = 76.518$
Then compute $76.518 \times \frac{5}{12} = \frac{382.59}{12}$

Step4: Final division

$\frac{382.59}{12} \approx 31.88$

Answer:

$\$31.88$