Determine the simple interest. p= $41, 864, r =0 .0375% per day, t = 60 days

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pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

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.

krishna-agrawala's profile pic

krishna-agrawala | College Teacher | (Level 3) Valedictorian

Posted on

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

maximumride's profile pic

maximumride | Student, Grade 9 | eNotes Newbie

Posted on

use this formula:

I = Prt




neela's profile pic

neela | High School Teacher | (Level 3) Valedictorian

Posted on

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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