Asked by Jason Cullen on May 09, 2024
Verified
Red Winowski invested money for five years because he was guaranteed that he would earn 12% ordinary simple interest (360-day year) per year. At the end of five years, he received all of his original investment plus an additional $1,500 as the interest that he had earned. How much money had Red invested five years earlier?
Ordinary Simple Interest
Interest calculated on the principal amount of a loan or deposit, based solely on the principal, rate, and time.
360-Day Year
A method used in accounting and finance that assumes a year has 360 days to simplify interest calculations.
- Learn to calculate and grasp the concept of ordinary simple interest for loans within a 360-day yearly framework.
- Figure out the principal value or interest rate from other specified loan conditions.
Verified Answer
CS
Learning Objectives
- Learn to calculate and grasp the concept of ordinary simple interest for loans within a 360-day yearly framework.
- Figure out the principal value or interest rate from other specified loan conditions.