Asked by Emily Faith on Apr 23, 2024
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Deanna and her sister Molly borrowed $1,600 from their mother. Their mother only charged 3% ordinary simple interest and the loan was for two years. Compute the total interest and principal that the sisters need to repay their mother. (Use a 360-day year.)
Ordinary Simple Interest
Interest calculated on the principal amount of a loan or investment without compounding, based on a 365-day year.
360-Day Year
A simplified accounting method where the year is considered to have 360 days for the calculation of interest and other financial metrics.
Two Years
A period of time equal to 24 months or 730 days, typically used as a measure for planning or agreements.
- Comprehend the principles of simple interest and compound interest.
- Employ mathematics to determine both simple and accurate interest rates.
- Attain expertise in adjusting numbers to the nearest cent within financial calculations.
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Learning Objectives
- Comprehend the principles of simple interest and compound interest.
- Employ mathematics to determine both simple and accurate interest rates.
- Attain expertise in adjusting numbers to the nearest cent within financial calculations.
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