Explanation Given Information: Principal amount of loan is $ 25 , 500 , rate of interest is 11 1 4 % and time period is 300 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, and T is the time period. The formula to calculate Maturity value is, M V = P + I Where, MV is maturity value, P is principal amount and I is the amount of interest. Calculation: Consider that principal amount of loan is $ 25 , 500 , rate of interest is 11 1 4 % and time period is 300 days. Simplify the rate of interest as, 11 1 4 % = 45 4 % = 11.25 % = 11.25 100 = 0.1125 Evaluate the time as, Time = Number of days of a loan 360 = 300 360 = 0

Contemporary Mathematics For Business & Consumers, Brief Edition, Loose-leaf Version

8th Edition

ISBN: 9781305867192

Author: Robert Brechner, Geroge Bergeman

Publisher: South-Western College Pub

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Chapter 10.II, Problem 25RE

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To calculate: The amount of ordinary interest and maturity value where principal amount is $25,500, rate of interest is 1114% and time period is 300 days. Round the percents to nearest tenth and days to next higher day if required.

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Chapter 10.II, Problem 24RE

Chapter 10.II, Problem 26RE

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Chapter 10 Solutions

Contemporary Mathematics For Business & Consumers, Brief Edition, Loose-leaf Version

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 and maturity value where principal amount is $ 25 , 500 , rate of interest is 11 1 4 % and time period is 300 days. Round the percents to nearest tenth and days to next higher day if required.

Solution Summary: The author calculates the amount of ordinary interest and maturity value using the formula I=PRT.

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To calculate: The amount of ordinary interest and maturity value where principal amount is $25,500, rate of interest is 1114% and time period is 300 days. Round the percents to nearest tenth and days to next higher day if required.

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Chapter 10 Solutions