Explanation Given Information: Principal amount of loan is $ 286 , 000 , rate of interest is 13 1 2 % and time period is 224 days. Formula used: Compute the time using the ordinary interest method, Time = Number of days of a loan 360 The formula to compute the amount of interest is, I = P R T Where, I is the amount of interest, P is the principal amount, R is the rate of interest, T is the time period. Calculation: Consider that principal amount of loan is $ 286 , 000 , rate of interest is 13 1 2 % and time period is 224 days. Simplify the rate of interest as, 13 1 2 % = 27 2 % = 13.5 % = 13

Contemporary Mathematics for Business & Consumers

8th Edition

ISBN: 9781305585447

Author: Robert Brechner, Geroge Bergeman

Publisher: Cengage Learning

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Chapter 10, Problem 4AT

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To calculate: The amount of ordinary interest where principal amount is $286,000, rate of interest is 1312% and time period is 224 days.

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Chapter 10, Problem 3AT

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Chapter 10 Solutions

Contemporary Mathematics for Business & Consumers

Ch. 10.I - Find the amount of interest on each of the...Ch. 10.I - Joe Hale goes to a credit union and borrows...Ch. 10.I - Prob. 3TIE Ch. 10.I - Prob. 4TIE Ch. 10.I - a. A loan was made on April 4 and had a due date...Ch. 10.I - a. What is the maturity date of a loan taken out...Ch. 10.I - Prob. 1RE Ch. 10.I - Prob. 2RE Ch. 10.I - Prob. 3RE Ch. 10.I - Prob. 4RE

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The amount of ordinary interest where principal amount is $ 286 , 000 , rate of interest is 13 1 2 % and time period is 224 days.

Solution Summary: The author calculates the amount of ordinary interest by substituting 286,000 for principal and rate of interest for time using the formula I=PRT.

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To calculate: The amount of ordinary interest where principal amount is $286,000, rate of interest is 1312% and time period is 224 days.

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Chapter 10 Solutions