Problem

Find the exact interest on a loan of $\$ 33,000$ at $8 \%$ annually for 35 days.

Solution

Step 1 :Given a loan of $33,000 at an annual interest rate of 8% for a period of 35 days, we are to find the exact interest on the loan.

Step 2 :First, we need to convert the annual interest rate from a percentage to a decimal. This is done by dividing the percentage by 100. So, 8% becomes 0.08.

Step 3 :Next, we need to convert the time period from days to years since the interest rate is given annually. This is done by dividing the number of days by 365. So, 35 days becomes approximately 0.0958904109589041 years.

Step 4 :We can now calculate the interest using the formula for simple interest, which is I = PRT, where I is the interest, P is the principal amount, R is the rate of interest, and T is the time period.

Step 5 :Substituting the given values into the formula, we get I = 33000 * 0.08 * 0.0958904109589041, which simplifies to approximately $253.15.

Step 6 :Thus, the exact interest on a loan of $33,000 at 8% annually for 35 days is \(\boxed{253.15}\).

From Solvely APP
Source: https://solvelyapp.com/problems/40461/

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