Good pm, please help me to my homework. Thank you
How to calculate an ordinary interest given a principal rate of 500,00 , at a rate of 18%, that will be due within 394 days? Find the ordinary interest
If you assume 360 days per year, the interest per day is just 1/360 of the annual interest. So, you will be charged
500.00 * 0.18/360 * 364
Sure! I'll be happy to help you with your homework.
To calculate the ordinary interest, we'll use the formula:
Ordinary Interest = Principal * Rate * Time
In this case, the principal is $500.00, the rate is 18%, and the time is 394 days.
Step 1: Convert the rate from a percentage to a decimal. To do this, divide the rate by 100.
Rate = 18% / 100 = 0.18
Step 2: Convert the time in days to years. Since we are given the time in days, we need to divide it by 365 (the number of days in a year) to get the time in years.
Time = 394 days / 365 = 1.08 years
Step 3: Plug the values into the formula and calculate the ordinary interest.
Ordinary Interest = $500.00 * 0.18 * 1.08
Calculating the values:
Ordinary Interest = 500 * 0.18 * 1.08
= 97.2
Therefore, the ordinary interest is $97.20.
Remember to always double-check your calculations! Let me know if you have any other questions or need further assistance.