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tkhunny

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Please help!!!!!!
I need to find the due date and maturity value for the following:

Date made/Oct. 7
Face Value/$18,000
Term of Loan/200 days
Rate/9 3/4

I looked at the chart for the number of the days of the year and got 280 days for Oct. 7th

I then added 200 days to 280 daya and came up with 480..I'm lost because I know that there are not 480 days in a year.

How do I make 9 and three fourths a decimal?
 
This is another counting problem. 200 days from October 7, assuming the February we are crossign is NOT a leap year February, is April 25th in the next year. Why do we care that October 7 is day 280? I suppose you could us this information. 200+280 = 480 as you noticed. Then 480 - 365 = 115. Find day 115 in the next year. I get April 25th again.

You aboslutely, positively, MUST learn to convert from fractions to decimals to percents. It is an essential skill.

9 3/4% = 9.75% = 0.0975 -- Stare at this until it soaks in.

Interest = Principle * Rate * Time
Interest = (18000) * (0.0975) * (200/365) = 961.6438

Amount Due = Principle + Interest = $18,000 + $961.65 = $18,961.65

There may be unusual and specific rules in various political jurisdictions. This is just one way.
 
tkhunny said:
Interest = (18000) * (0.0975) * (200/365) = 961.6438
Amount Due = Principle + Interest = $18,000 + $961.65 = $18,961.65
TK, I'm shocked :shock:
YOU rounded UP, jipping the unsuspecting borrower :cry:
 
I know. I did it on purpose. I've been taking nasty calls at work, lately. I guess I felt like getting back a little.

What say you, original poster? Are we getting anywhere?
 
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