Patty takes out a 105 day loan for $12,000. The yearly interest rate for the loan is 13.5% simple interest. How much money will she owe at the end of the 105 days?
I think that the formula is A=P(1+rt) correct?
And since it is asking for how much she will owe at the end of the 105 days, it can be considered the future value right?
So I must solve for the amount?
P=$12,000 *t=105/365 r=13.5
* is the unit for t written correctly?
A=P(1+rt)
= 12000(1+ (.135)(105/365)
= 12000(1 + .0388356..)
= $12466.03