To calculate the interest due on an amount of money, you can use the simple interest formula: Interest = Principal × Rate × Time. Here’s how you can do it step by step:
- Identify the values:
- Principal (P): $800
- Annual Interest Rate (R): 12%, which is 0.12 in decimal form
- Time (T): 120 days. To use the formula, convert this into years. There are 365 days in a year, so:
- T = 120 days / 365 days/year = 0.3288 years (approximately).
- Plug the values into the formula:
Interest = $800 × 0.12 × 0.3288 - Calculate:
Interest = $800 × 0.12 = $96
Interests for the specific time = $96 × 0.3288 = $31.50 (approximately). - Conclusion:
So, the interest due on $800 at an annual interest rate of 12% for 120 days is approximately $31.50.
This method gives you an easy way to find out how much interest you owe or will earn over a given period!