Question

Suppose that Jane borrows $8400 from a bank on April 9 at an annual rate of 9.2% simple interest. How much does she owe on August 20 of the same year?

Answer 1

274.576 + 8400 = $8674.576

Explanation:

Here, Number of days = 21 + 31 +30 +31 +20 = 123

We know that,

`Simple Interest = (P*T*R)/(100)`

where, P = Principle = 8400

T = time = 123 ÷ 365

R = Rate = 9.2

⇒
`Simple Interest = (8400*123*9.2)/(365*100)`

⇒ Simple Interest = 274.576

Thus, total amount Jane has on 20 August = 274.576 + 8400 = $8674.576