Finance · real student question

Compute x = 5.1 x 0.075 x 365.

Question

Compute

x=5.1×0.075×365x=5.1\times0.075\times365

Step-by-step solution

  1. Recognise the calculation. This is the simple-interest product I=PrtI=P\cdot r\cdot t: a principal of 5.15.1 (often in thousands or millions), a rate of 0.075=7.5%0.075=7.5\%, and a term of 365365 days expressed in daily units. Knowing the context tells you the answer should be roughly 7.5%7.5\% of 5.1×3655.1\times365.

  2. Multiply the two decimals first. Taking the small numbers together keeps the intermediate value manageable:

    5.1×0.075=0.38255.1\times0.075=0.3825

    Check the decimal places: 51×75=382551\times75=3825, and 1+3=41+3=4 decimal places, so 0.38250.3825 ✓.

  3. Multiply by 365. Split it as 0.3825×(300+65)0.3825\times(300+65):

    0.3825×300=114.75,0.3825×65=24.86250.3825\times300=114.75,\qquad 0.3825\times65=24.8625

    114.75+24.8625=139.6125114.75+24.8625=139.6125

  4. State the result.

    x=139.6125x=139.6125

    The answer has exactly four decimal places, inherited from the four in 0.38250.3825 multiplied by an integer.

  5. Cross-check by reordering the factors. Multiplication is associative, so grouping differently must agree: 0.075×365=27.3750.075\times365=27.375, and 5.1×27.375=139.61255.1\times27.375=139.6125 ✓. Also 5.1×365=1861.55.1\times365=1861.5, and 1861.5×0.075=139.61251861.5\times0.075=139.6125 ✓ — all three orderings match, confirming the value.

Answer

x=139.6125x=139.6125

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