Abbey Ruckles went to the Hillside Bank. She borrowed 3,000 at a rate of 12 3/4%. The date of the loan was september 10. Abbey hoped to repay the loan on january 29. Assuming the loan is based on ordinary interest, how much will Abbey totally repay on January 29?
I did:
P=3000
R=12.75%
T=5/12
I=PxRxT
I=3000x12.75x141/360
I=3000x .1275x.3916
I=149.81
Answer is 3149.81?
2007-12-12 04:05:21 · 2 answers · asked by Jasmine 1 in Science & Mathematics ➔ Mathematics
your approach is the ideal approach...
the bone of contention here is the value of T...
it simply depends on the definition given... some people use 360, others use 365... so it depends on which style your class (or book) uses...
thus you can simply change that value whenever desired... §
2007-12-12 04:37:24 · answer #1 · answered by Alam Ko Iyan 7 · 0⤊ 0⤋
September - 20days
October - 31 days
November 30 days December 31 days
December - 31 days
January 29 days
Total = 141 days
I would use 141/365, otherwise it looks good.
2007-12-12 04:33:12 · answer #2 · answered by ironduke8159 7 · 0⤊ 0⤋