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Need help with questions 15&17

Need help with questions 15&17-example-1
User RufatZZ
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1 Answer

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15. I = Prt

... 1527.78 = 25,000·0.11·(d/360) . . . where d is the number of days.

Divide by the coefficient of d

... 1527.78·360/(25000·0.11) = d = 200

The loan is for 200 days.

17. In millions, the company borrowed 170 and received proceeds of 157.25. Thus the discount amount was 170 -157.25 = 12.75

Then the rate can be found from

... I = Prt

... 12.75 = 170·r·(270/360)

Dividing by the coefficient of r, we get ...

... r = 12.75·360/(170·270) = 0.10 = 10%

The discount rate is 10%.

User Uji
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