example 5 check your understanding: how much simple interest would $800 earn in 300 days in a non - leap…

example 5 check your understanding: how much simple interest would $800 earn in 300 days in a non - leap year at an interest rate of 1.71%? round to the nearest cent.

example 5 check your understanding: how much simple interest would $800 earn in 300 days in a non - leap year at an interest rate of 1.71%? round to the nearest cent.

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. First, convert the annual interest rate to a decimal: $r=1.71%=0.0171$.

Step2: Convert time to years

Since there are 365 days in a non - leap year, $t=\frac{300}{365}$.

Step3: Calculate the simple interest

Substitute $P = 800$, $r = 0.0171$, and $t=\frac{300}{365}$ into the formula $I=Prt$. $I=800\times0.0171\times\frac{300}{365}$ $I = 800\times0.0171\times0.821918$ $I=800\times0.0140558$ $I = 11.24464\approx11.24$

Answer:

$11.24$