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The way to figure simple interest is much more simple than the way to figure compund interest.
The formula for simple interest is
I = prt
In this equation, I is the interest, p is the principal -- the amount you invest, r is the rate of interest, t is the time.
So in this case, you would have
I = 41864*.000375*60
You would need to be sure to convert your interest rate to a decimal --.0375% is .000375
That gets you 941.94 which means you would have gotten that amount of interest on your investment for the time period you mentioned.
The total simple interest interest is given by the formula below:
I = p*r*t/100
I = Total simple interest
p = Principal amount taken on loan
r = Rate of interest payable on loan expressed as percentage of the principle for a single time period. Generally the time period used for specifying the rate of interest is one year, but other periods can also be used. In the given question the interest rate is specified in terms of days.
t = Duration or time period of the loan. This should be in the same units as used for specifying the interest rate.
It is given:
p = $41864
r = 0.0375 % per day
t = 60 days
Substituting the given values in formula for simple interest we get:
Interest = 41864*0.037*60/100 = 941.94
Simple Interest = $941.94
use this formula:
I = Prt
The simple interest, given in r =0.0375% per day.
Therefore the simple interest per dollar per day is 0.0375/100 dollars.
So, the simple interest per dollar for sixty days = (0.0375/100)*60 dollars .
Therefore, the simple interest for the principle, $41,864 = $(0.0375/100)*60*41864 = $941.94.
Hope this helps,
With best wishes of the new year
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