Explanation Given Information: The loan of $ 100000 is taken at the rate of interest, 10 % per annum for the time period of 1 days. Formula Used: The simple interest formula is I = P × R × T , where T is the time period in years. For exact interest, T = N u m b e r o f d a y s o f l o a n 365 For ordinary interest, T = N u m b e r o f d a y s o f l o a n 360 Calculation: Consider the data provided as the loan of $ 100000 is taken at the rate of interest of 10 % per annum for the time period of 1 days. Then the Interest can be calculated in the following manner, The time period for exact interest is, T = 1 365 Exact Interest ( I ) = P × R × T

Contemporary Mathematics for Business & Consumers - With LMS CengageNOW

8th Edition

ISBN: 9781337125468

Author: Brechner

Publisher: Cengage

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Chapter 10.I, Problem 12RE

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To calculate: The comparison between exact interest and the ordinary interest for the loan of $100000 over a period of 1 days at a rate of interest of 10% per annum by Exact interest method and ordinary interest method.

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Chapter 10 Solutions

Contemporary Mathematics for Business & Consumers - With LMS CengageNOW

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 comparison between exact interest and the ordinary interest for the loan of $ 100000 over a period of 1 days at a rate of interest of 10 % per annum by Exact interest method and ordinary interest method.

Solution Summary: The author compares the exact and ordinary interest rates for the loan of 100000 over a period of 1 days.

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To calculate: The comparison between exact interest and the ordinary interest for the loan of $100000 over a period of 1 days at a rate of interest of 10% per annum by Exact interest method and ordinary interest method.

Chapter 10 Solutions