Find the ordinary interest using: a) Ordinary time b) Exact time c) Find the Exact Interest using exact time

Fundamentals of Financial Management, Concise Edition (MindTap Course List)
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Chapter15: Working Capital Management
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3. A loan of $500 at 7% annual interest rate. The loan was made on March 15 and due on
Мay15.
Find the ordinary interest using:
a) Ordinary time
b) Exact time
c) Find the Exact Interest using exact time
a. I= 500 x 0.07/360 x 60 = $5.831 = 500(É
b. I= 500 x 0.07/360 x 61 = $5.93
- c. I= 500 x 0.07/365 x 61 = $5.8
Transcribed Image Text:3. A loan of $500 at 7% annual interest rate. The loan was made on March 15 and due on Мay15. Find the ordinary interest using: a) Ordinary time b) Exact time c) Find the Exact Interest using exact time a. I= 500 x 0.07/360 x 60 = $5.831 = 500(É b. I= 500 x 0.07/360 x 61 = $5.93 - c. I= 500 x 0.07/365 x 61 = $5.8
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