State Bank made a loan at 12% interest for 360 days. If the amount of interest was $934.20, use the ordinary interest method to find the amount of principal borrowed.
If 360 days counts as a year, then you want P such that
0.12*P = 934.20
If a year is counted as 365 days, then
0.12*(360/365)*P = 934.20
Note:
Ordinary interest method is based 360 days in a year.
Exact interest method is based on 365 days in a year.
To find the amount of principal borrowed using the ordinary interest method, you would need to use the formula:
Interest = Principal x Rate x Time
In this case, the interest is given as $934.20, the rate is 12% (or 0.12), and the time is 360 days.
Rearranging the formula to solve for the principal (P):
Principal = Interest / (Rate x Time)
Substituting the given values:
Principal = $934.20 / (0.12 x 360)
Principal = $934.20 / 43.2
Principal = $21,562.50
Therefore, the amount of principal borrowed by the State Bank is $21,562.50.
To find the amount of principal borrowed using the ordinary interest method, we need to use the formula:
Interest = Principal * Rate * Time
In this case, we are given the values for interest ($934.20), rate (12%), and time (360 days).
Let's solve the equation for Principal:
Principal = Interest / (Rate * Time)
Substituting the given values:
Principal = $934.20 / (0.12 * 360)
Principal = $934.20 / 43.2
Principal ≈ $21,586.11
Therefore, the amount of principal borrowed from State Bank is approximately $21,586.11.