Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest.
-House of Realty earned $420.00 interest on a $18,000 deposit in an account paying 4%. Find the number of days that the funds were on deposit.
A)58 days
B)213 days
C)315 days
D)210 days

Question

Quizplus · Accepted Answer

We can use the banker's interest formula:

I = PRT

where I is the interest earned, P is the principal, R is the rate, and T is the time in years. Since we want to find the number of days, we need to convert it to years by dividing by 365:

I = PRT/365

Plugging in the given values, we get:

420 = (18,000)(0.04)(T)/365

Simplifying, we get:

T = 210

So the funds were on deposit for 210 days, which makes the answer choice D the best option. To use banker's interest, we need to divide the interest earned by the product of the principal and the rate and the time in days.

420 / (18,000 x 0.04 x t) = 1/365

where t is the number of days.

Solving for t gives us:

t = 210 days

(rounded to the nearest whole day)

Therefore, the answer is D)210 days.

Find Principal to the Nearest Dollar, Rate to the Nearest