A print shop borrows
$8400
from a credit union for
307
days. The credit union charges simple interest at an annual rate of
5.75% for this loan. Assume each day is 1/365 of a year. Answer each part below.
Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the
list of financial formulas
.
(a) Find the interest that will be owed after
307
days.
$
(b) Assuming the print shop doesn't make any payments, find the amount owed after
307
days.
(a) To find the interest that will be owed after 307 days, we can use the formula for simple interest:
Interest = Principal x Rate x Time
Here, the principal is $8400, the rate is 5.75% (or 0.0575 as a decimal), and the time is 307 days (or 307/365 as a fraction of a year).
Interest = $8400 x 0.0575 x (307/365) = $583.63
The interest owed after 307 days is $583.63.
(b) To find the amount owed after 307 days, we add the interest to the principal:
Amount Owed = Principal + Interest
Amount Owed = $8400 + $583.63 = $8983.63
The amount owed after 307 days is $8983.63.
To find the interest that will be owed after 307 days, we can use the simple interest formula:
Interest = Principal x Rate x Time
Where:
Principal = $8400
Rate = 5.75% or 0.0575 (converted to decimal)
Time = 307 days (1/365 of a year)
(a) Find the interest that will be owed after 307 days:
Interest = $8400 x 0.0575 x (307/365)
Interest = $8400 x 0.0575 x 0.8411
Interest = $321.86925
Therefore, the interest that will be owed after 307 days is $321.87.
To find the amount owed after 307 days (including principal and interest), we need to add the interest to the principal amount.
(b) Amount owed after 307 days:
Amount owed = Principal + Interest
Amount owed = $8400 + $321.87
Amount owed = $8721.87
Therefore, the amount owed after 307 days is $8721.87.