Joanne and Ed Greenwood built a new barn with an attached arena. To finance the loan, they paid $1,307 interest on $45,000 at 4.0%. What was the time, using exact interest?

To find the time using exact interest, we can use the formula:

Interest = Principal * Rate * Time

Given that the interest is $1,307, the principal is $45,000, and the rate is 4.0%, we can substitute these values into the formula and solve for time.

1,307 = 45,000 * 0.04 * Time

Dividing both sides of the equation by (45,000 * 0.04):

Time = 1,307 / (45,000 * 0.04)

Time = 1,307 / 1,800

Time = 0.7264

Therefore, the time, using exact interest, is approximately 0.7264 years or approximately 8.717 months.

To find the time, we can use the formula for simple interest:

I = P * r * t

Where:
I is the interest,
P is the principal amount,
r is the interest rate per period, and
t is the time in periods.

In this case, we are given the interest I as $1,307, the principal amount P as $45,000, and the interest rate r as 4.0% (or 0.04 in decimal form).

Plugging these values into the formula, we have:

1,307 = 45,000 * 0.04 * t

To find the time t, we can rearrange the equation:

t = (1,307) / (45,000 * 0.04)

Now we can solve for t:

t = 1,307 / (1,800)

By dividing these numbers, we find:

t ≈ 0.726

Therefore, the time using exact interest is approximately 0.726 periods.

I = Po*(r/365)*t = $1307

I = 45000*(.04/365)*t = 1307
4.932t = 1307
t = 265 Days.

3.25