### Ordinary Interest Calculation Exercise**Task:** Complete the following using ordinary interest. **Instructions:** Use the [Days in a year table](#) to determine the number of days for the interest calculation. Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent.#### Details Provided:- **Principal Amount:** $1,475- **Interest Rate:** 12%- **Date Borrowed:** June 05- **Date Repaid:** January 01- **Exact Time:** 209 days### Table Summary| Principal | Interest Rate | Date Borrowed | Date Repaid | Exact Time | Interest | Maturity Value ||-----------|---------------|---------------|-------------|------------|-----------|----------------|| $1,475 | 12% | June 05 | Jan. 01 | 209 | $101.35 | $1,576.35 |### Notes:- **Status:** The answer is complete but not entirely correct.- The table includes errors in the exact time, interest, and maturity value calculations, as indicated by red cross marks.### Discussion:- **Interest Calculation:** Requires using the principal, interest rate, and time to calculate using ordinary interest formula.- **Maturity Value:** Sum of the principal and interest.This exercise aids in understanding how to use ordinary interest for financial calculations. ### Table of Day Numbers for Each Month of the YearThis table displays the corresponding day number of the year for each day of the month across all twelve months. The columns are organized by month and the rows by the day of the month. The months listed are from January to December, with their respective number of days.#### Header:- **Day of Month** - Represents the day number within the specific month.- **31 Jan.** - January with 31 days.- **28 Feb.** - February with 28 days.- **31 Mar.** - March with 31 days.- **30 Apr.** - April with 30 days.- **31 May** - May with 31 days.- **30 June** - June with 30 days.- **31 July** - July with 31 days.- **31 Aug.** - August with 31 days.- **30 Sept.** - September with 30 days.- **31 Oct.** - October with 31 days.- **30 Nov.** - November with 30 days.- **31 Dec.** - December with 31 days.#### Transcription of the Table:```plaintextDay of month | 31 Jan. | 28 Feb. | 31 Mar. | 30 Apr. | 31 May | 30 June | 31 July | 31 Aug. | 30 Sept. | 31 Oct. | 30 Nov. | 31 Dec.1 | 1 | 32 | 60 | 91 | 121 | 152 | 182 | 213 | 244 | 274 | 305 | 3352 | 2 | 33 | 61 | 92 | 122 | 153 | 183 | 214 | 245 | 275 | 306 | 3363 | 3 | 34 | 62 | 93 | 123 | 154 | 184 | 215 | 246 | 276 | 307 | 3374 | 4 | 35 | 63 | 94 | 124 | 155 | 185 | 216 | 247 | 277 |

Formula: Interest amount = Principal x Interest rate x Time period.

Complete the following, using ordinary interest. (Use Days in a year table.) (Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent.) Answer is complete but not entirely correct. Date borrowed Date repaid Exact time Principal Interest rate Interest Maturity value 1,475 12% June 05 Jan.01 209 101.35 1,576.35 X

Complete the following, using ordinary interest. (Use Days in a year table.) (Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent.) Answer is complete but not entirely correct. Date borrowed Date repaid Exact time Principal Interest rate Interest Maturity value 1,475 12% June 05 Jan.01 209 101.35 1,576.35 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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