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Louie borrowed $1800 from his aunt last December 25,2010.He promised that he will pay his aunt on February 14,2011 at 8% interest.Find the exact simple interest to be paid by Louie.

$20.20
$20.12
$24.12
$36.60
Explanation:

Principal amount is $1,800.

Rate of interest is 8%.

Counting the number of days from December 25 to February 14;

Dec 25-31 6

Jan 1-31 31

Feb 1-14 14

Total 51 days

Converting days into years:

51 days x (1year365days) = 51365years

Using the formula for solving the simple interest;

Interest = Principal x Rate x Time

Interest = $1,800 x 8% x 51365

Interest = $1,800 x 0.08 x 51365

Interest = $20.12

Therefore, the Louie will pay $20.12 interest.

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