The ordinary interest method is to calculate simple interest based on 360 days in a year.
So
interest=principal*(days/360)*rate
68.50=principal*(274/360)*6%
therefore
principal=68.50*(360/274)/0.06
=$1500
Find the amount of the principal on a loan at 6% interest for 274 days if the interest was $68.50, using the ordinary interest method.
1 answer
1 answer