   Chapter 10.I, Problem 42RE ### 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

# Solve the following word problems. Round to the nearest cent when necessary.On April 12, Michelle Lizaro 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?b. What is the maturity value of the loan?c. What is the maturity date of the loan? (a) To determine To calculate: The amount of interest on the loan by ordinary interest method, if Michelle borrowed$5000 from credit union at the interest rate of 9% for 80 days on April 12.

Explanation

Given Information:

Michelle borrowed $5000 from credit union at the interest rate of 9% for 80 days on April 12. Formula used: The simple interest formula is, Interest=Principle×Rate×Time Or, I=P×R×T Where, I is interest, P is principal, R is rate of interest and T is the time in years. To change the time in the year from the day, following formula used: Time=Number of days of a loan360 Calculation: Consider the provided information, Michelle borrowed$5000 from credit union at the interest rate of 9% for 80 days on April 12

(b)

To determine

To calculate: The maturity value of the loan, if Michelle borrowed $5000 from credit union at the interest rate of 9% for 80 days on April 12. (c) To determine To calculate: The maturity date of the loan, if Michelle borrowed$5000 from credit union at the interest rate of 9% for 80 days on April 12.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

#### In Problems 7-34, perform the indicated operations and simplify. 7.

Mathematical Applications for the Management, Life, and Social Sciences

#### Expand each expression in Exercises 122. (x+1)(x3)

Finite Mathematics and Applied Calculus (MindTap Course List)

#### Subtract 7516278 .

Mathematics For Machine Technology 