To pay for car​ repairs, you take out a simple interest loan for ​$1480 at a rate of 8.5​% for 150 days. Find the interest you will pay if the lender uses the​ Banker's Rule ​(360 days in a​ year) Do not round until the final answer. Then round to the nearest cent as​ needed

To calculate the interest on a simple interest loan using the Banker's Rule (which assumes a year has 360 days), we can use the formula for simple interest:

\[
I = P \times r \times t
\]

Where:
- $ I $ is the interest
- $ P $ is the principal amount (\$1480)
- $ r $ is the annual interest rate (8.5% or 0.085 as a decimal)
- $ t $ is the time in years, which is the number of days divided by 360

Given:
- $ P = 1480 $
- $ r = 0.085 $
- $ t = \frac{150}{360} $ years

Now, substitute these values into the formula:

\[
I = 1480 \times 0.085 \times \frac{150}{360}
\]

Let's calculate that.The interest you will pay is approximately \$52.42 when rounded to the nearest cent.

Would you like further details or have any other questions?

Here are five related questions for you:
1. How is the Banker's Rule different from using a 365-day year for interest calculations?
2. What would the interest be if the loan duration was for 180 days instead?
3. How would the interest change if the rate were 7% instead of 8.5%?
4. What total amount would you repay, including both principal and interest?
5. How can compound interest affect a similar loan over the same period?

**Tip:** When calculating interest, always verify whether the lender uses 360 or 365 days to avoid minor calculation errors.

To pay for car​ repairs, you take out a simple interest loan for ​$1480 at a rate of 8.5​% for 150 days. Find the interest you will pay if the lender uses the​ Banker's Rule ​(360 days in a​ year). Do not round until the final answer. Then round to the nearest cent as​ needed.

Learn how to calculate the interest on a $1480 simple interest loan at a rate of 8.5% for 150 days using the Banker's Rule (360 days in a year). Step-by-step solution with key formulas and final interest of $52.42 rounded to the nearest cent. Ideal for high school students learning about interest calculations.

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