Find the exact simple interest on a principal of P40, 000.00 for 2 years and 4 months at 10.2%.
To find the simple interest on a certain principal, we need its amount, its term duration, and the interest rate.
We will use them according to this formula:
In this problem, the given values are P = ₱40000, r = 10.2% or 0.102, and t = 2.333…
We need to substitute these and evaluate.
The following series of equations will display and explain the full solution to solve for the exact simple interest.
Thus, the exact simple interest on the given principal is ₱9520.00.
Hope this helps!