On september 28, Jennifer Rick went to Park Bank to borrow $4,500 at interest. Jennifer plans to repay the loan on January 22. Assume the loan is on ordinary interest
To calculate the interest on a loan with ordinary interest, you need to know the principal amount (the amount borrowed), the interest rate, and the time period for which the loan is taken. In this case, we have the following information:
Principal amount (P) = $4,500
Loan date (September 28)
Loan repayment date (January 22)
First, we need to calculate the time period in years. To do this, we count the number of days between the loan date and the repayment date, and then divide by the number of days in a year (assuming a standard 365-day year).
Loan period (T) = (Repayment date - Loan date) / 365
Repayment date (January 22) = 31 (days in September) + 31 (days in October) + 30 (days in November) + 31 (days in December) + 22 (days in January) = 145 days
Loan period (T) = 145 / 365 = 0.3973 years (approximately)
Next, we need to know the interest rate (R) at which the loan is borrowed. Assuming we have the interest rate, we can calculate the interest using the formula:
Interest (I) = P * R * T
Since the interest is not given, we are unable to calculate the exact amount of interest Jennifer Rick will have to pay on the loan. Therefore, we need the interest rate in order to continue the calculations.