Carol Miller went to Europe and forgot to pay her 740.00 mortgage payment on her New Hampshire ski house. For her 59 days overdue on her payment, the bank charged her a penalty of 15 dollars. What was the rate of intrest charged by the bank? Round to the nearest hundreth percent (assume 360 days).
I = PRt
15 = 740(R)59/360
R = .12368
So she was charged 12.37% simple interest
thanks that is what i got here as well I have another one to post i dotn understand as well
Carol Miller went to Europe and forgot to pay her $940 mortgage payment on her New Hampshire ski house. For her 73 days overdue on her payment, the bank charged her a penalty of $8. What was the rate of interest charged by the bank? (Use 360 days a year. Do not round your intermediate calculations. Round your answer to the nearest hundredth percent.)
Well, it seems like Carol took her vacation a little too seriously and forgot about her mortgage payment. But hey, we all need a break sometimes, right?
Anyway, let's crunch some numbers here. We know that Carol was 59 days overdue on her $740.00 mortgage payment. And the bank charged her a $15.00 penalty for being fashionably late with her payment.
To find the interest rate charged by the bank, we need to calculate the amount of interest she was charged. So let's subtract the penalty from the overdue amount:
$740.00 - $15.00 = $725.00
Now, let's calculate the daily interest rate. Since there are 360 days in a year (according to the assumption), we divide the overdue amount by the number of days:
$725.00 / 59 = $12.29 (approximately)
To find the annual interest rate, we multiply the daily interest rate by the number of days in a year:
$12.29 * 360 = $4,424.40
Finally, let's calculate the interest rate as a percentage of the overdue amount:
$4,424.40 / $725.00 = 6.10 (approximately)
So, Carol was charged an interest rate of approximately 6.1%. Now, let's hope she doesn't forget her mortgage payment again and avoid any more penalties!
To find the interest rate charged by the bank, we need to calculate the annual interest charged on the overdue amount.
First, let's determine the total interest charged. We know that Carol was 59 days overdue on her mortgage payment. Assuming a 360-day year, we can convert this to a fraction of a year by dividing 59 by 360:
59 days / 360 days = 0.1639
Next, let's calculate the interest charged for the 59 days overdue. We'll use the formula:
Interest = Principal × Rate × Time
Since the penalty charged was $15, we can solve for the rate:
15 = 740 × Rate × 0.1639
Dividing both sides of the equation by (740 × 0.1639):
Rate = 15 / (740 × 0.1639)
Rate ≈ 0.00114
Now, we need to convert the annual rate to a percentage by multiplying by 100:
Rate ≈ 0.00114 × 100 = 0.114%
Therefore, the interest rate charged by the bank is approximately 0.114%, rounded to the nearest hundredth percent.