Question

Simple Interest

Determine the exact simple interest on P 1,000,000 invested for the period from October 24, 1987 to January 7, 1990, if the rate of interest is 17%.

Answer 1

find exact simple intereste first we have to arrange time properly

in year 1987, total day is 365 and from 24 oct to 31 dec total day's is 69. So Fraction is 69/365

In year 1988, total day 366, because an extra day in Feb. So fraction is 366/366.

In year 1989 , total day 365 , so fraction is 365/365.

In year 1990, from 1 jan to 7 jan count , so fraction is 7/365.

So now we calculate all

Time (T)= 2.20821918

P = 1000000

R = 17%

So value of simple intereste = 375397.261