Question

On April 12, Michelle borrowed $5,000 from her credit union at 9% for 80 days. The credit union
uses the ordinary interest method.
a. What is the amount of interest on the loan? $90
b. What is the maturity value of the loan?$5090
c. What is the maturity date of the loan?july 1

I got them all wrong...the answers i got are above

Answer 1

How are you getting your answers ???

a) interest = 5000(.09)(80/365) = 98.63

b) value = 5000 + 98.63 = $5098.63

c) look at a calendar, count 80 days starting April 13 as one, april 14 as 2 , etc

Answer 2

REINY your answers are incorrect as well the correct answers are:

A) 5000x0.09x80/360=100

B) 5000(1+0.09x80/360)=5100

C) 30-12=18
80-18=62
62-31=31
31-30=1
answer is July 1

Answer 3

A) Interest=100
(5,000x0.09x80)=36,000
36,000/360 days= 100

B) Formula MV=P+I
MV= 5,000+100
MV= 5,100
MV- Maturity Value
P- Price
I- Interest