the principal p is borrowed at a simple interest rate r for a period of time t. find the simple interest…

the principal p is borrowed at a simple interest rate r for a period of time t. find the simple interest owed for the use of the money. assume 360 days in a year. p = $450, r = 5%, t = 2 years. $ (round to the nearest cent as needed.)

the principal p is borrowed at a simple interest rate r for a period of time t. find the simple interest owed for the use of the money. assume 360 days in a year. p = $450, r = 5%, t = 2 years. $ (round to the nearest cent as needed.)

Answer

Explanation:

Step1: Convert rate to decimal

The simple - interest formula is $I = Prt$, where $P$ is the principal, $r$ is the interest rate, and $t$ is the time. Given $r = 5%=0.05$, $P = 450$, and $t = 2$.

Step2: Substitute values into formula

Substitute $P = 450$, $r = 0.05$, and $t = 2$ into the formula $I=Prt$. So $I=450\times0.05\times2$.

Step3: Calculate the interest

First, $450\times0.05 = 22.5$, then $22.5\times2=45$.

Answer:

$45.00$