I'm not sure this is the correct calculation. The OP is not a native speaker of English, so might not have made an exact translation of the problem.HallsofIvy said:Since this is 'simple' interest, it is just the interest rate times the principle:
0.57286 (to 5 decimal places) times $49000. Or, since 49000 is divisible by 7 (I presume that is what you mean by "7 corresponds to 49000) 57 and 1/7 equals 399/7+ 1/7= 400/7 so you have (400/7)(49000)/100= 400(70)= 28000.
Yes, it is conceivable that the OP posted the wrong problem. But I don't see how we can assume that! The OP specifically said "simple interest". I believe him!Mark44 said:I'm not sure this is the correct calculation. The OP is not a native speaker of English, so might not have made an exact translation of the problem.
My reasoning is that in asking for the simple interest for the second year, it's possible that the principal (note spelling) at the start of the second year includes the interest earned in the first year. If so, this is really a problem about compound interest. If the problem really is about simple interest, then the interest earned each year will be the same, so I don't understand why the problem asked specifically about the second year, rather than the interest earned each year.
Simple Interest is the amount of money earned or paid on a principal amount for a specific period of time, without taking into account any compounding interest.
Simple Interest is calculated by multiplying the principal amount, interest rate, and time period (in years). The formula is: Simple Interest = (Principal amount) x (Interest Rate) x (Time period).
Simple Interest is calculated only on the principal amount, whereas Compound Interest is calculated on both the principal amount and any accumulated interest from previous periods.
No, Simple Interest cannot be negative. It is always a positive value that represents the amount of money earned or paid on a principal amount.
To calculate the total amount owed, you can add the Simple Interest to the principal amount. This will give you the total amount of money that needs to be paid back, including the interest earned or paid.