A) Interest $ 69.87
B) Maturity value $ 3,969.87
Explanation:
a:
365
Sept. 20= – 263
________
102
+ 27
__________
129
$3,900 ×0.05 × 129/360 = $69.88 interest
b:
$69.88 + $3,900 = $3,969.88
On September 20, Jody Jansen went to Sunshine Bank to borrow $3,900 at 5% interest. Jody plans to repay the loan on January 27. Assume the loan is on ordinary interest. (Use table value)
(a)
What interest will Jody owe on January 27? (Use 360 days a year. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
b)
What is the total amount Jody must repay at maturity? (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
1 answer