How do you calculate the interest due on a loan of 1000 at an interest rate of 75 for 280 days?

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To calculate the interest due on a loan, you can use the simple interest formula, which is:

Interest (I) = Principal (P) × Rate (R) × Time (T)

In this case:

  • Principal (P) = 1000 (the amount of the loan)
  • Rate (R) = 75 (the annual interest rate, expressed as a decimal for calculation purposes)
  • Time (T) = 280 days (we will convert this into years for our calculation)

First, we need to convert the annual interest rate into a decimal:

Rate (R) = 75 / 100 = 0.75

Next, we convert the time from days to years:

Time (T) = 280 days / 365 days/year ≈ 0.767 years

Now, we can plug these values into the formula:

I = P × R × T

I = 1000 × 0.75 × 0.767

Calculating this gives:

I ≈ 575.25

So, the interest due on the loan of 1000 at an interest rate of 75 for 280 days is approximately 575.25.

In summary, it’s essential to convert both the interest rate and the time period appropriately to ensure that you calculate the interest accurately. Always double-check your calculations for precision!

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