Quiz 10: Simple Interest and Promissory Notes

Business

To find the amount of interest for a loan of $15,000 at 13% interest for 120 days, apply the simple interest formula. The simple interest formula is stated as img where P is the principal, R is the rate of interest and T is the time factor. Now find the amount of interest of the loan by using the exact interest method. Exact interest uses 365 days as the denominator of the time factor in the simple interest formula. Now substituting 15,000 for P, 13% for R and img for T in the simple interest formula gives img Hence the amount of interest for the loan by using the exact interest method is img .

The practice of borrowing and lending money dates back in history for thousands of years. Institutions such as banks, savings and loans, and credit unions are specifically in business to borrow and lend money. The price or rental fee charged by a lender to a borrower for the use of money is known as img .

To find the amount of interest for a loan of $1,700 at img % interest for 33 days, apply the simple interest formula. The simple interest formula is stated as img where P is the principal, R is the rate of interest and T is the time factor. Now find the amount of interest of the loan by using the exact interest method. Exact interest uses 365 days as the denominator of the time factor in the simple interest formula. Now substituting 1,700 for P, img % for R and img for T in the simple interest formula gives img Hence the amount of interest for the loan by using the exact interest method is img .

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There is no answer for this question