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 365 days in a year. p = $5000, r = 2%, t = 1 year

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 365 days in a year. p = $5000, r = 2%, t = 1 year

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the interest rate to decimal

Given $r = 2%=\frac{2}{100}=0.02$.

Step3: Substitute values into the formula

We have $P = 5000$, $r = 0.02$, and $t = 1$. Substitute these values into $I = Prt$. So, $I=5000\times0.02\times1$.

Step4: Calculate the interest

$I = 100$.

Answer:

$100$