   Chapter 10, Problem 2AT ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# Using the ordinary interest method (360 days), find the amount of interest on the following loans.$1,700 12 1 2 33 _________ To determine To calculate: The amount of exact interest where principal amount is$1,700, rate of interest is 1212% and time period is 33 days.

Explanation

Given Information:

Principal amount of loan is $1,700, rate of interest is 1212% and time period is 33 days. Formula used: Compute the time using the exact interest method, Time=Number of days of a loan365 The formula to compute the amount of interest is, I=PRT Where, I is the amount of interest, P is the principal amount, R is the rate of interest, T is the time period. Calculation: Consider that principal amount of loan is$1,700, rate of interest is 1212% and time period is 33 days.

Simplify the rate of interest as,

1212%=252%=12.5%=12

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