Asked by Sumaya Hassan on Jun 24, 2024
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Edison Automotive Machining Company needs to borrow money to repair a broken milling machine. The company can borrow $80,000 for 300 days at 7% exact simple interest. Compute the total amount that Edison will need to repay. (Use a 365-day year.)
Exact Simple Interest
Interest calculated based on the principal amount for a specific number of days, using a 365-day year.
365-Day Year
A calendar method that assumes each year has 365 days for the purpose of interest calculation, ignoring leap years.
Milling Machine
A tool used in machining processes for shaping metal and other solid materials, utilizing rotary cutters to remove material.
- Identify the differences in computing ordinary interest (360-day year) versus exact interest (365-day year).
- Execute mathematical techniques to calculate usual and precise interest figures.
- Become adept at refining numbers to the closest cent when conducting financial calculations.
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Learning Objectives
- Identify the differences in computing ordinary interest (360-day year) versus exact interest (365-day year).
- Execute mathematical techniques to calculate usual and precise interest figures.
- Become adept at refining numbers to the closest cent when conducting financial calculations.
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