The formula to calculate the per diem interest is:
\[ DI = \frac{AR}{365} \times P \]
Where:
Per diem typically refers to the daily amount paid on a loan or mortgage. It comes from the Latin term "per diem," which means "by the day."
Example 1:
Step 1: Calculate the per diem interest:
\[ DI = \frac{5}{365} \times 10,000 \approx 1.37 \text{ dollars per day} \]
Example 2:
Step 1: Calculate the per diem interest:
\[ DI = \frac{3}{365} \times 15,000 \approx 1.23 \text{ dollars per day} \]
