Asked by Kayla Valdes on Apr 25, 2024
Verified
Nelda Brown borrowed $1,420 for 120 days to buy some new furniture for her office. At the due date, Nelda repaid a total of $1,448. What was the exact simple interest rate (365-day year) that she paid on the loan? (To nearest 1/10 of a percent.)
Exact Simple Interest
The precise amount of interest earned or paid on a principal amount over a specific period, without compounding.
365-day Year
A method used for interest calculations where a year is assumed to have exactly 365 days.
- Determine the exact simple interest rate given the loan amount, the total repayment amount, and the loan period.
- Utilize mathematical equations to address financial challenges.
Verified Answer
FM
Fidelis Maphosa7 days ago
Final Answer :
$1,448 - $1,420 = $28 interest
R = I ÷ (PT) = $28 ÷ ($1,420 × 120/365) = 0.05998 or 0.06 = 6%
R = I ÷ (PT) = $28 ÷ ($1,420 × 120/365) = 0.05998 or 0.06 = 6%
Learning Objectives
- Determine the exact simple interest rate given the loan amount, the total repayment amount, and the loan period.
- Utilize mathematical equations to address financial challenges.