Find the interest due to the bank on a loan of $1,000 at 7.5% for 280 days.

Solution:

Given, loan amount, P = $1000

Rate of interest, r = 7.5%

Number of time periods, n = 280 days

n = 280/365 years

We know, simple interest, I = (P × n × r)/100

I = (1000 × (280/365) × 7.5)/100

I = $57.53

Therefore, the interest due to the bank is $57.53.

Example: Find the interest due to the bank on a loan of $2,000 at 8% for 2 years.

Solution:

Given, loan amount, P = $2000

Rate of interest, r = 8%

Number of time periods, n = 2 years

We know, simple interest, I = (P × n × r)/100

I = (2000 × 2 × 8)/100

I = $320

Therefore, the interest due to the bank is $320

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Find the interest due to the bank on a loan of $1,000 at 7.5% for 280 days.

Summary:

The interest due to the bank on a loan of $1,000 at 7.5% for 280 days is $57.53