# interest math

On April 12, Michelle borrowed \$5,000 from her credit union at 9% for 80 days. The credit union
uses the ordinary interest method.
a. What is the amount of interest on the loan? \$90
b. What is the maturity value of the loan?\$5090
c. What is the maturity date of the loan?july 1

I got them all wrong...the answers i got are above

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asked by lynda
1. How are you getting your answers ???

a) interest = 5000(.09)(80/365) = 98.63

b) value = 5000 + 98.63 = \$5098.63

c) look at a calendar, count 80 days starting April 13 as one, april 14 as 2 , etc

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posted by Reiny
2. REINY your answers are incorrect as well the correct answers are:

A) 5000x0.09x80/360=100

B) 5000(1+0.09x80/360)=5100

C) 30-12=18
80-18=62
62-31=31
31-30=1
answer is July 1

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posted by Shai

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