ON September 14th Jennifer Rick went to a park bank to borrow 2500.00 at 11 3/4 intrest. Jennifer plans to repay the loan on January 27th Assume the loan is on the ordinary intrest. What intrest will Jennifer own on Jan 27th What is the total amount Jennifer must repay at Maturity?
To determine the interest Jennifer will owe on January 27th and the total amount she must repay at maturity, we need to use the formula for simple interest.
The formula for simple interest is:
Interest = Principal * Rate * Time
1. First, let's calculate the interest Jennifer will owe on January 27th.
Principal (P) = $2500.00
Rate (R) = 11 3/4% = 11.75% = 0.1175 (in decimal form)
Time (T) = Number of days from September 14th to January 27th
To calculate the time, let's count the number of days:
- September: 30 days
- October: 31 days
- November: 30 days
- December: 31 days
- January: 27 days (from September 27th to January 27th, excluding the final day)
Total days = 30 + 31 + 30 + 31 + 27 = 149 days
Now let's calculate the interest:
Interest = Principal * Rate * Time
Interest = $2500.00 * 0.1175 * (149/365)
Interest = $101.51 (rounded to the nearest cent)
2. To find the total amount Jennifer must repay at maturity, we need to add the interest to the principal.
Total amount = Principal + Interest
Total amount = $2500.00 + $101.51
Total amount = $2601.51
Therefore, Jennifer will owe $101.51 in interest on January 27th, and the total amount she must repay at maturity is $2601.51.