A loan of $2500 is taken on March 15 and repaid September 15th. The interest rate for the loan was 17.75%. Find the interest using ordinary time and ordinary interest
I=prt
I = 2500 * 0.1775 * 0.5
To find the interest using ordinary time and ordinary interest, we need to consider the number of days between March 15th and September 15th.
Step 1: Calculate the number of days between the two dates.
March has 31 days, April has 30 days, May has 31 days, June has 30 days, July has 31 days, August has 31 days, and September has 15 days.
Therefore, the total number of days is: 31 + 30 + 31 + 30 + 31 + 31 + 15 = 189 days.
Step 2: Convert the interest rate to a decimal form.
The interest rate is given as 17.75%. We divide it by 100 to convert it to a decimal: 17.75 / 100 = 0.1775.
Step 3: Calculate the interest using the formula:
Interest = Principal x Rate x Time
In this case, the Principal is $2500, the Rate is 0.1775, and the Time is 189 days (as calculated in Step 1).
Therefore, the interest is: 2500 x 0.1775 x (189 / 365) = $232.34 (rounded to two decimal places).
So, the interest on the loan, using ordinary time and ordinary interest, is $232.34.