Question

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 = $7000, r = 3%, t = 1 year
$\square

Explanation:

Step1: Recall simple interest formula

The formula for simple interest \( I \) is \( I = P \times r \times t \), where \( P \) is principal, \( r \) is annual interest rate (in decimal), and \( t \) is time in years.

Step2: Convert rate to decimal

Given \( r = 3\% \), convert to decimal: \( r = \frac{3}{100} = 0.03 \).

Step3: Substitute values into formula

Substitute \( P = 7000 \), \( r = 0.03 \), \( t = 1 \) into \( I = P \times r \times t \):
\( I = 7000 \times 0.03 \times 1 \).

Step4: Calculate the interest

\( 7000 \times 0.03 = 210 \), so \( I = 210 \).

Answer:

\( 210 \)