Questions: Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p=509.53, r=8.3%, t=73 days

Solution Steps

To determine the simple interest, we can use the formula: \[ \text{Simple Interest} = \frac{P \times R \times T}{100 \times 360} \] where \( P \) is the principal amount, \( R \) is the annual interest rate, and \( T \) is the time in days.

We are given the following values:

• Principal amount \( P = 509.53 \)
• Annual interest rate \( R = 8.3\% \)
• Time period \( T = 73 \) days

The formula for calculating simple interest is: \[ \text{Simple Interest} = \frac{P \times R \times T}{100 \times 360} \]

Substituting the given values into the formula: \[ \text{Simple Interest} = \frac{509.53 \times 8.3 \times 73}{100 \times 360} \]

Calculating the above expression yields: \[ \text{Simple Interest} \approx 8.5757 \]

Final Answer