simple interest

Victory77

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Oct 15, 2009
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On April 11, 2008, Janeen Camoct borrowed $21,000 with 6.55% interest. The loan is due March 31, 2009. Use ordinary interest to calculate the interest. What total amount will Janeen pay on March 31, 2009?
 
Hello, Victory77!

You're expected to know this formula: .\(\displaystyle \text{Interest} \;=\;\text{Principal} \times \text{Rate} \times \text{Time}\)


On April 11, 2008, Janeen Camoct borrowed $21,000 with 6.55% interest.
The loan is due March 31, 2009.
Use ordinary interest to calculate the interest.
What total amount will Janeen pay on March 31, 2009?

\(\displaystyle \text{The principal is: }\:p \:=\:21,\!000\)

\(\displaystyle \text{The rate is: }\:R \:=\:6.55\% \:=\:0.0655\)

\(\displaystyle \text{The time is 11 days short of a full year, }354\text{ days: }\:T \:=\:\frac{354}{360}\)


\(\displaystyle \text{Hence: }\:I \;=\;21,\!000 \times 0.0655 \times \frac{354}{360} \;=\;1352.575 \;\approx\;\$1352.58\)

\(\displaystyle \text{Therefore, she will pay: }\:\$21,\!000 + 1352.58 \;=\;\$22,\!352.58\)
 
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