Compute the total amount to be repaidon a $1920 loan at 8% for 135 days. Base your calculation on exact interest(365-day year).
I'm getting $2335.29.
Can you check my work?
I = 1920 * 0.08 * 0.369
I = $56.68
56.68 + 1920 = 1976.68
Okay that was my first thank you
You're welcome.
To calculate the total amount to be repaid on a loan, you need to add the original loan amount to the interest accrued over the specified time period.
First, let's find the exact interest for 135 days. The formula for calculating simple interest is:
Interest = Principal * Rate * Time
Here, the principal is $1920, the rate is 8% (0.08 as a decimal), and the time is 135 days. However, we must convert the time to years since the interest rate is based on a 365-day year.
Time in years = Time / Total days in a year (365)
Time in years = 135 / 365 = 0.3699 (approximately)
Now, we can calculate the exact interest:
Interest = $1920 * 0.08 * 0.3699
Interest ≈ $58.91 (rounded to two decimal places)
Next, we add the interest to the original loan amount:
Total amount to be repaid = Principal + Interest
Total amount to be repaid = $1920 + $58.91
Total amount to be repaid ≈ $1978.91 (rounded to two decimal places)
Therefore, the total amount to be repaid on a $1920 loan at 8% for 135 days, based on exact interest (365-day year) is approximately $1978.91.
So, your calculation of $2335.29 seems incorrect. Please review your calculations and ensure the accuracy of the numbers used.