Explanation Given Information: The principle amount of $ 50 , 490 is made for 69 days at a rate of interest of 9 1 4 % . Formula used: The formula to compute the simple interest is, I = P × R × T Where, P is the principal amount, I is the amount of interest, R is the rate of interest and T is the time-period. The ordinary interest for the given loan is; Time = Number of days of a loan 360 The exact interest for the given loan is; Time = Number of days of a loan 365 Calculation: As given, the principle amount of $ 50 , 490 is made for 69 days at a rate of interest of 9 1 4 % . For ordinary interest for the given loan is; Time = Number of days of a loan 360 Thus, T = 69 360 For exact interest for the given loan is; Time = Number of days of a loan 365 Thus, T = 69 365 The amount of interest accrued from the issue of principal at a rate of interest of 9 1 4

Contemporary Mathematics for Business & Consumers

8th Edition

ISBN: 9781305585447

Author: Robert Brechner, Geroge Bergeman

Publisher: Cengage Learning

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Chapter 10.I, Problem 15RE

To determine

To calculate: The amount of interest accrued by using the ordinary method and the exact method on a principle amount of $50,490 at a rate of interest of 914% and over a period of time of 69 days.

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Chapter 10.I, Problem 14RE

Chapter 10.I, Problem 16RE

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 interest accrued by using the ordinary method and the exact method on a principle amount of $ 50 , 490 at a rate of interest of 9 1 4 % and over a period of time of 69 days.

Solution Summary: The author calculates the amount of interest accrued from the issue of principal at a rate of 914% using the ordinary and exact methods.

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To calculate: The amount of interest accrued by using the ordinary method and the exact method on a principle amount of $50,490 at a rate of interest of 914% and over a period of time of 69 days.

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Chapter 10 Solutions