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 = $640, r = 5%, t = 2 years (round to the nearest cent as needed).

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 $r = 5\%=0.05$, $P = 640$, and $t = 2$.

Step3: Substitute values into the formula

$I=Prt=640\times0.05\times2$.

Step4: Calculate the result

$I = 640\times0.05\times2=64$.

Answer:

$64$