Question

"If a loan of 1 million is made for 7 days at a rate of 5% per
annum, how much interest would be received? (Assume 365/365
days in the year )​

Answer 1

Answer:

Interest ≈ 95,890.41

Step-by-step explanation:

Given -

A loan of 1 million is made for 7 days at the rate of 5% per annum.

.

To find -

How much the interest would be received

.

Solution -

.

Interest on one year (365 days) = 5%

Interest on one day = 5/365 % = 1/73 %

.

Principal Amount (P) = 10,00,000

Rate of interest (r) = 1/73% per day

Time (t) = 7 days

.

Now using the simple interest formula,

S. I. = Prt

$= 1000000 \times \frac{1}{73} \times 7 \\ \\ = \frac{7000000}{73} \\ \\ = 95890.411$

So interest ≈ 95,890.41

Note :- The sign '≈' shows approx value.

hope it helps.