Posted by **Ekanki** on Monday, April 23, 2012 at 10:07pm.

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 -
**Ekanki**, Monday, April 23, 2012 at 10:11pm
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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