Asked by Thaiyanis Betancourt on May 22, 2024
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Devon Gillies is a college student who is working as a laborer for a landscape company during the summer. Before the first paycheck, the owner loaned Devon $1,000 for 30 days at 5% ordinary simple interest. Compute the total amount that Devon will need to repay the owner when he gets paid after 30 days. (Use a 360-day year.)
Ordinary Simple Interest
A method of calculating the interest charge on a loan based on the principal amount, interest rate, and time.
360-Day Year
Refers to an accounting simplification where a year is assumed to have 360 days instead of 365 or 366, commonly used in financial calculations.
Landscape Company
A business specializing in designing, implementing, and maintaining outdoor gardens and spaces, often including planting, hardscaping, and lawn care services.
- Absorb the basic ideas behind simple interest and compound interest.
- Engage mathematical knowledge to compute both regular and exact interest totals.
- Cultivate the skill of rounding numbers to the nearest hundredth for precision in financial calculations.
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Learning Objectives
- Absorb the basic ideas behind simple interest and compound interest.
- Engage mathematical knowledge to compute both regular and exact interest totals.
- Cultivate the skill of rounding numbers to the nearest hundredth for precision in financial calculations.
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