Asked by Melissa Plata on Apr 24, 2024
Verified
Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent.
Ordinary Interest
interest calculated on a loan or investment based on a 360-day year, commonly used in banking and finance.
Exact Interest
Interest calculation method utilizing the actual number of days in the interest period and a 365-day year to determine the accurate interest due.
- Delineate the distinctions between utilizing a 360-day year for ordinary interest calculations versus a 365-day year for exact interest calculations.
- Engage in mathematical calculations to compute both usual and exact interest amounts.
- Foster the ability to calculate figures rounded to the nearest cent for economic analyses.
Verified Answer
AA
Learning Objectives
- Delineate the distinctions between utilizing a 360-day year for ordinary interest calculations versus a 365-day year for exact interest calculations.
- Engage in mathematical calculations to compute both usual and exact interest amounts.
- Foster the ability to calculate figures rounded to the nearest cent for economic analyses.
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