The La Monedita bank grants you a loan for 30,000 and charges you an interest rate of 20% per year. How much will you have been charged after 4,800 days? What is the amount of interest?
Accepted Solution
A:
The interest charged by the bank can be calculated using the formula for simple interest:
$$ I = PRT $$
where:
- $I$ is the interest,
- $P$ is the principal amount (the loan amount),
- $R$ is the rate of interest per year, and
- $T$ is the time the money is borrowed for in years.
Given:
- $P = \$30,000$,
- $R = 20\% = 0.20$ per year, and
- $T = \frac{4800}{365} \approx 13.15$ years (since there are approximately 365 days in a year).
Substituting these values into the formula gives:
$$ I = \$30,000 \times 0.20 \times 13.15 $$
The interest charged after 4800 days is: $78904.11
# Given values