posted by lynda on .
On April 12, Michelle borrowed $5,000 from her credit union at 9% for 80 days. The credit union
uses the ordinary interest method.
a. What is the amount of interest on the loan? $90
b. What is the maturity value of the loan?$5090
c. What is the maturity date of the loan?july 1
I got them all wrong...the answers i got are above
How are you getting your answers ???
a) interest = 5000(.09)(80/365) = 98.63
b) value = 5000 + 98.63 = $5098.63
c) look at a calendar, count 80 days starting April 13 as one, april 14 as 2 , etc
REINY your answers are incorrect as well the correct answers are:
answer is July 1