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Compute the amount of interest owed on a 90-day, 10 percent note for $11,000.

Note: Assume 360 days in a year. Do not round intermediate calculations.


Sagot :

To determine the amount of interest owed on a 90-day, 10 percent note for [tex]$11,000, we can use the formula for simple interest. The formula for simple interest is: \[ \text{Interest} = \frac{\text{Principal} \times \text{Rate} \times \text{Time}}{\text{Number of Days in a Year}} \] Where: - Principal is the initial amount of the loan or investment, - Rate is the annual interest rate in decimal form, - Time is the duration of the loan or investment in days, - Number of Days in a Year is generally 360 days (as assumed in this problem). Let's break down the required steps: 1. Principal: This is the initial amount of the loan, which is $[/tex]11,000.

2. Rate: The annual interest rate is 10%. To convert this percentage to a decimal, we divide by 100:
[tex]\[ 10\% = \frac{10}{100} = 0.10 \][/tex]

3. Time: The loan duration is 90 days.

4. Number of Days in a Year: For this problem, we are assuming there are 360 days in a year.

Now, let's substitute the given values into the simple interest formula:

[tex]\[ \text{Interest} = \frac{11,000 \times 0.10 \times 90}{360} \][/tex]

First, let's calculate the numerator:

[tex]\[ 11,000 \times 0.10 = 1,100 \][/tex]

Next, multiply this result by the number of days:

[tex]\[ 1,100 \times 90 = 99,000 \][/tex]

Finally, divide the result by the number of days in a year (360):

[tex]\[ \frac{99,000}{360} = 275.0 \][/tex]

Therefore, the amount of interest owed on the 90-day, 10 percent note for [tex]$11,000 is $[/tex]275.0.
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