Joyce took out a loan for $21,900, at 12 percent, on March 18, 2007, which will be due on January 9, 2008. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of_________.
To find the total amount that Joyce will pay back on January 9, 2008, we need to calculate the amount of interest she will need to pay in addition to the original loan amount.
First, let's calculate the interest amount for the loan:
Principal (loan amount) = $21,900
Interest rate = 12%
Time (in years) = January 9, 2008 - March 18, 2007 = 0.78 years (approximately)
Interest = Principal * Interest rate * Time
Interest = $21,900 * 0.12 * 0.78
Interest = $2,570.32
Now, let's add the interest to the principal to find the total amount Joyce will pay back:
Total amount = Principal + Interest
Total amount = $21,900 + $2,570.32
Total amount = $24,470.32
Therefore, Joyce will pay back a total amount of $24,470.32 on January 9, 2008.