On September 14, Jennifer Rick went to Park Bank to borrow $2,500 at formula9.mml interest. Jennifer plans to repay the loan on January 27. Assume the loan is on ordinary interest. (Use Days in a year table.)
a.
What interest will Jennifer owe on January 27? (Do not round intermediate calculations. Round your answer to the nearest cent.)
Interest $
b.
What is the total amount Jennifer must repay at maturity? (Do not round
To calculate the interest Jennifer will owe on January 27, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
First, let's figure out the time period of the loan. From September 14 to January 27, there are 134 days according to the Days in a year table.
Now, we can plug the values into the formula:
Principal = $2,500
Rate = formula9.mml interest (decimal form)
Time = 134 days
To convert the annual formula9.mml interest rate to a decimal form, we divide it by 100: formula9.mml/100 = formula10.mml.
Using the formula:
Interest = $2,500 * formula10.mml * 134/365
Now, we can calculate the interest:
Interest = $2,500 * formula10.mml * 134/365
To round the answer to the nearest cent, we can use the appropriate rounding rule.
Now, let's move on to part b.
The total amount Jennifer must repay at maturity includes the principal amount borrowed and the interest owed.
Total amount = Principal + Interest
Using the values we already have:
Principal = $2,500
Interest = [calculated from part a]
Total amount = $2,500 + [interest calculated from part a]
To round the final answer, use the appropriate rounding rule.
These steps should help you find the answers to the questions.