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business Maths

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On September 20, Jody Jansen went to Sunshine Bank to borrow $3,900 at 5% interest. Jody plans to repay the loan on January 27. Assume the loan is on ordinary interest. (Use table value)

(a)
What interest will Jody owe on January 27? (Use 360 days a year. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
b)
What is the total amount Jody must repay at maturity? (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

  • business Maths - ,

    A) Interest $ 69.87
    B) Maturity value $ 3,969.87
    Explanation:
    a:
    365
    Sept. 20= – 263
    ________
    102
    + 27
    __________
    129

    $3,900 ×0.05 × 129/360 = $69.88 interest
    b:
    $69.88 + $3,900 = $3,969.88

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