Asked by Justin Paquet on Jun 24, 2024
Verified
Rick Morrow is willing to lend modest amounts of money to his employees for short terms at 9% ordinary simple interest (360-day year). In May, one employee borrowed some money for 30 days. In June, she repaid the loan plus $6.30 interest. Compute the amount that the employee had borrowed.
Ordinary Simple Interest
Interest calculated on the principal amount only, without compounding, usually over a period of a year or less.
360-Day Year
A financial convention or calculation basis where the year is assumed to consist of 360 days rather than 365 or 366 days, often used in interest rate calculations.
- Achieve proficiency in understanding and performing calculations of simple interest for loans based on a 360-day year.
- Determine the principal amount or rate given other loan terms.
Verified Answer
DS
Learning Objectives
- Achieve proficiency in understanding and performing calculations of simple interest for loans based on a 360-day year.
- Determine the principal amount or rate given other loan terms.