How to calculate simple interest for 90 days?

Calculating Simple Interest for 90 Days

Simple interest is a calculation used to determine the interest earned or owed on a loan or investment over a specific period. Unlike compound interest, simple interest does not take into account the interest earned on previously accrued interest.

Formula for 90-Day Simple Interest:

The formula for calculating simple interest for 90 days is:

I = Prt

where:

• I is the simple interest earned or owed
• P is the principal amount (initial amount of the loan or investment)
• r is the interest rate expressed as a decimal
• t is the fraction of a year represented by the time period

Steps to Calculate:

To find the simple interest for 90 days, follow these steps:

1. Convert 90 days to a fraction of a year:

t = 90 days / 360 days (number of days in a year)
t = 0.25

2. Multiply the principal by the interest rate:

Pr = P * r

3. Multiply the result from step 2 by the time fraction:

I = Pr * t

Example:

Suppose you have a loan of $1,000 with an interest rate of 5% per year. You want to calculate the simple interest for 90 days.

Calculation:

P = $1,000
r = 5% = 0.05
t = 0.25

I = $1,000 * 0.05 * 0.25
I = $12.50

Therefore, the simple interest for 90 days on the loan is $12.50.