find the simple interest on the following loan. assume 365 days in a year. $36,200 at 6.25% for 179 days…

find the simple interest on the following loan. assume 365 days in a year. $36,200 at 6.25% for 179 days. the simple interest on $36,200 at 6.25% for 179 days is $ (round to the nearest cent as needed.)

find the simple interest on the following loan. assume 365 days in a year. $36,200 at 6.25% for 179 days. the simple interest on $36,200 at 6.25% for 179 days is $ (round to the nearest cent as needed.)

Answer

Explanation:

Step1: Identify the 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.

Step2: Convert the annual interest rate to decimal

The annual interest rate $r = 6.25%=0.0625$.

Step3: Convert the number of days to years

The time $t=\frac{179}{365}$ years. The principal amount $P = 36200$.

Step4: Calculate the simple interest

Substitute the values into the formula: $I=Prt=36200\times0.0625\times\frac{179}{365}$. First, calculate $36200\times0.0625 = 36200\times\frac{625}{10000}=36200\times\frac{5}{80}= \frac{36200\times5}{80}=\frac{181000}{80}=2262.5$. Then, calculate $2262.5\times\frac{179}{365}=\frac{2262.5\times179}{365}=\frac{404987.5}{365}\approx1109.55$.

Answer:

$1109.55$