Asked by Sonia Nelson on Jul 02, 2024
Verified
Walter Fong borrowed $1,175 at 8% ordinary simple interest for 180 days. Compute the total amount that Walter will have to pay on the due date. (Use a 360-day year.)
Ordinary Simple Interest
Interest calculated only on the principal amount, not on the interest that accrues over time.
360-Day Year
An artificial accounting period used in finance that simplifies the calculation of interest by assuming each month has 30 days, resulting in a calendar year of 360 days.
- Gain an understanding of the fundamentals of simple and compound interest.
- Use math skills for computing both common and exact interest amounts.
- Develop the ability to round numbers to the nearest cent as part of financial analysis.
Verified Answer
WR
Learning Objectives
- Gain an understanding of the fundamentals of simple and compound interest.
- Use math skills for computing both common and exact interest amounts.
- Develop the ability to round numbers to the nearest cent as part of financial analysis.
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