A company borrows $ 3000 at 15.6% for 60 days. Find the amount of simple interest due and the total amount that must be paid after 60 days.

Solution:

The annual interest rate is 15.6%.

One year = 360 days = 6*60 days

So 60 days = 1/6 year

So the amount of simple interest = $ 3000* 15.6% * 1/6 = $78

the total amount that must be paid after 60 days = $ 3000 + $78 = $3,078