Question

Leon franklin obtained a 1,000 dollar loan to purchase a new color laser printer. His interest rate is 5.5% exact interest for 120 days. How much interest does Leon owe

Answer 1

Explanation:

Usually this problem is figured out by using 360 as the number of days in a year. It will give you a rough answer

i = p * r * t

p = 1000

r = 5.5% = 5.5/100

t = 120/365

i = 1000 * 5.5 / 100 * 120/365

i = 18.02 dollars.

If you take the number of days in a year you get

i = 1000 * 5.5/100 * 120/360

i = 18.33 cents.

Since you have a calculator, I would use the top answer (18.02)