On September 7, Jennifer Rick went to Park Bank to borrow $3,200 at 11 2/3% interest. Jennifer plans to repay the loan on January 5. Assume the loan is on ordinary interest (ordinary interest uses 360 days a year).

Solving for:
1. interest Jennifer will owe on January 5
2. the total amount Jennifer must repay at maturity.
My calculations have given me answers of
1. $124.44 interest ($3200)(11 2/3%)(120/360)
2. $3,324.44 maturity value on Jan 5th

The website the problems are on indicates they are incorrect answers. So I am stuck.
I appreciate any insight I can get.
Thank you!

1. I = Po*r*t,

I=3200*(35/3)%/100%)*(118/360)=$122.37.

2. Pt = 3200 + 122.37 = $332237.

I would use 120 days if the maturty date had been Jan. 7th.

To solve this problem, we need to use the formula for calculating simple interest:

Interest = Principal * Rate * Time

1. To find the interest Jennifer will owe on January 5, we first need to calculate the time in years. The loan is for 120 days, so we divide it by 360 (since ordinary interest uses 360 days a year):

Time = 120 / 360 = 1/3 years

Now we can calculate the interest:

Interest = $3,200 * 11 2/3% * 1/3 = ($3,200 * (35/3) / 100) * 1/3 ≈ $411.11

Therefore, the correct answer for the interest Jennifer will owe on January 5 is approximately $411.11, not $124.44 as you calculated.

2. To find the total amount Jennifer must repay at maturity, we add the interest to the principal:

Total amount = Principal + Interest = $3,200 + $411.11 = $3,611.11

Therefore, the correct answer for the total amount Jennifer must repay at maturity is approximately $3,611.11, not $3,324.44 as you calculated.

I hope this helps clarify the correct answers for you. Let me know if you have any further questions!