Find the exact interest on a loan of $8,000 at 8% annually for 60 days. $ (Round to the nearest cent as needed.)
Find the exact interest on a loan of $8,000 at 8% annually for 60 days. $ (Round to the nearest cent as needed.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Simple Interest Calculation Exercise
#### Problem Statement:
Find the exact interest on a loan of $8,000 at 8% annually for 60 days.
#### Solution:
To find the simple interest on a loan, use the formula for simple interest:
\[ \text{Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount ($8,000 in this case),
- \( r \) is the annual interest rate (8% or 0.08 as a decimal),
- \( t \) is the time period in years.
First, convert the time period from days to years:
\[ t = \frac{60 \text{ days}}{365 \text{ days/year}} \approx 0.1644 \text{ years} \]
Then, substitute the values into the formula:
\[ \text{Interest} = 8000 \times 0.08 \times 0.1644 \]
Calculate the interest amount and round to the nearest cent as needed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3aaa20b-aa03-431c-a209-6c3af75044ad%2F693be426-e485-4dd8-99ce-a781fd41a922%2Fuivirth_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Simple Interest Calculation Exercise
#### Problem Statement:
Find the exact interest on a loan of $8,000 at 8% annually for 60 days.
#### Solution:
To find the simple interest on a loan, use the formula for simple interest:
\[ \text{Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount ($8,000 in this case),
- \( r \) is the annual interest rate (8% or 0.08 as a decimal),
- \( t \) is the time period in years.
First, convert the time period from days to years:
\[ t = \frac{60 \text{ days}}{365 \text{ days/year}} \approx 0.1644 \text{ years} \]
Then, substitute the values into the formula:
\[ \text{Interest} = 8000 \times 0.08 \times 0.1644 \]
Calculate the interest amount and round to the nearest cent as needed.
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