Shannon O'Hara borrowed $10,000 for 60 days at an annual interest rate of 6.5%. Find the simple interest due on the loan. Assume 365 days in a year. Round your answer to the nearest hundredth.

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Quizplus · Accepted Answer

The simple interest can be calculated using the formula $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount ($10,000), $r$ is the annual interest rate (6.5%, or 0.065 as a decimal), and $t$ is the time the money is borrowed for, in years. For 60 days, $t = \frac{60}{365}$ years. Plugging the values in, $I = 10000 \times 0.065 \times \frac{60}{365} = 106.849315$, which rounds to $106.85.

Shannon O'Hara Borrowed $10,000 for 60 Days at an Annual