Asked by Liz

Joyce took out a loan for $21,900 at 12 percent on March 18, 2000, which will be due on January 9, 2001. using ordinary interest, Joyce will pay back on January 9 a total amount of:

Answer: $24,068.10

Ordinary interest is 360
March 18 = 77 days
January 9 - 9 days

Interest = (P) Principal x (I) Rate x (T)Time

T = Exact number of days/360

Please show step by step. Thank you!

Answers

Answered by Liz
okay, I figure how to solve my problem.

Principal: $21,900
Interest Rate: 12%
Date borrowed: March 18 = 77 days
Date repaid: January 9 = 9 days

365 - 77 = 288 + 9 = 297 days
Interest = Prinicpal x Rate x Time
I = $21,900 x .12 x 297/360
I = $2,168.10

Maturity Value = Principal + Interest
MV = $21,900 + $2,168.10
MV = $24,068.10
Answered by Linda Cruz
Stephanie Venze signed a simple discount note for $3400 for 120 days at a rate of 12%. Find (a) the proceeds and
Answered by Linda Cruz
Stephanie Venze signed a simple discount note for $3400 for 120 days at a rate of 12%. Find (a) the proceeds and (b) (b) the effective interest rate based on the proceeds received by Venze.
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