Posted by Scott on .
On Sept 14 Jennifer Rick went to park bank to borrow 2500.00 at 11 3/4 intrest. Jennifer plans to repay the loan on Janauary 27th Assume the loan is on ordinary intrest. What intrest will Jennifer owe on January 27th What is the total amount Jennifer must repay at Maturity
If by "ordinary interest" you mean that the interest is not compounding at some interval (such as monthly), and if it is charged at a daily rate of 11.75%/365, then for this 135-day loan, the interest due would be
(135/365)*(0.1175)*2500.00 = $108.65
The total amount to pay off the loan will be $25,108.65