i=prt So p=700 r=11% and t=240 days. The interest is 51.33 and the total payment is 751.33. How do u get that

Question

Formula I=PRT

Answer 1

i stands for interest, p for principal [the amount of money you started out with] the r stands for rate, the rate of interest, and t stands for time. all we have to do now is plug the values in!
I = PRT
P= 700
R = 11%, or 0.11
and wait a minuto. . . where's time? you see, the rate is YEARLY, and they time we have is only days. so you have to convert days into years. so since there are 365 days in a year, divide 240 days by 365, and you get the years [or fraction of year] that the money's been in the bank. this way it will work right with the rate. 240/365 is .675 rounded. So NOW we plug it in!
I = (700)(0.11)(.675...)
And rounded up, it should come to $751.33!

PLug into a calculator and tada! instant $751.33 .

Answer 2

Based on simple interest, I arrive at a little difference. The 11% interest usually refers to an annual rate. This assumes that the total would be paid at the end of term, 240 days.

Rate=11%, (0.11), per year / 365 days = 0.000301 = Interest % rate per day.

Cash interest per day = $700 X 0.000301 = 0.21 cents per day.

Cash Interest for term = 240 X 0.21 =
Total interest = $50.40.
Total payment = $700 + 50.40 = $750.40

This is not calculated like an amortization schedule, with periodic payments throughout the term.