The general formula to calculate the simple interest is given to be:
[tex]I=P\times R\times T[/tex]
where:
[tex]\begin{gathered} I=\text{ Simple Interest} \\ P=\text{ Loan Amount} \\ R=\text{ Rate in decimals} \\ T=\text{ Number of time periods (yearly)} \end{gathered}[/tex]
To adjust for daily time periods, we will divide the rate by 365. Therefore, we have the following parameters:
[tex]\begin{gathered} P=300 \\ R=\frac{4}{100\times365}=\frac{1}{9152} \\ T=60 \end{gathered}[/tex]
Note: We are working with the assumption that the rate is annual, although not clearly stated.
Substituting these parameters into the formula, we have:
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