Homework Help: Business Math

Posted by Liz on Sunday, January 29, 2012 at 2:08pm.

Joyce took out a loan for $21,900 at 12 percent on March 18, 2000, which will be due on January 9, 2001. using ordinary interest, Joyce will pay back on January 9 a total amount of:

Answer: $24,068.10

Ordinary interest is 360
March 18 = 77 days
January 9 - 9 days

Interest = (P) Principal x (I) Rate x (T)Time

T = Exact number of days/360

Please show step by step. Thank you!

Business Math - Liz, Monday, January 30, 2012 at 11:20am
okay, I figure how to solve my problem.

Principal: $21,900
Interest Rate: 12%
Date borrowed: March 18 = 77 days
Date repaid: January 9 = 9 days

365 - 77 = 288 + 9 = 297 days
Interest = Prinicpal x Rate x Time
I = $21,900 x .12 x 297/360
I = $2,168.10

Maturity Value = Principal + Interest
MV = $21,900 + $2,168.10
MV = $24,068.10

Answer this Question

Related Questions

Business Math - Joyce took out a loan for $21,900 at 12 percent on March 18, ...
Business Math - 13. Joyce took out a loan for $21,900 at 12 percent on March 18...
math - Joyce took out a loan for $21,900 at 12 percent on March 18, 2007, which ...
math - Joyce took out a loan for $21,900, at 12 percent, on March 18, 2007, ...
math - Janet took out a loan of $50,000 from Bank of America at 8 percent on ...
math - Janet took out a loan of $50,000 from Bank of America at 8 percent on ...
business math - lane french had a bad credit rating and went to a local cash ...
business math - Jill Ley took out a loan to pay for her child's education ...
Business Math - Lane French had a bad credit rating and went to a local cash ...
math - Jill Ley took out a loan to pay for her child's education for $60,000...

For Further Reading

First Name:
School Subject:
Answer: