Asked by Scott

ON September 14th Jennifer Rick went to a park bank to borrow 2500.00 at 11 3/4 intrest. Jennifer plans to repay the loan on January 27th Assume the loan is on the ordinary intrest. What intrest will Jennifer own on Jan 27th What is the total amount Jennifer must repay at Maturity?
Answered by Ms. Sue
First, multiply 0.1175 * 2500 to find the yearly interest. Let that number be represented by x.

Next, figure out how many days there are between Sept. 14 and Jan. 27. Let that number be resented by d.

Then, find the amount she'll owe on a partial year by plugging your numbers into this equation.

Interest = (d/360) * x

If you post your answer, we'll be glad to check it.
Answered by Scott
I am not understanding this here still. I have figured out that D=136 and the intrest is = 293.75
Answered by Scott
I think the answere is 110.99
Answered by Ms. Sue
You're right so far. She had the loan for 136 days. The yearly interest is $293.75.

Now you need to find the percentage of the year that she had the loan.
136 / 360 = 0.375 = 37.5% of the year.

Multiply 0.375 * $293.75 to find the interest she'll owe in January.
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