Question

Round all answers to nearest cent. Lou Valdez is buying a truck. His monthly interest was $155 at 10 1/4 % interest. What is Lou's principal balance after the beginning of November? Use 360 days. DO NOT round the denominator in our calculation

Answer 1

$18,146.34

Step-by-step explanation:

Data provided in the question

Monthly interest = $155

Interest rate = 0.1025% which represents the 10 1/4 %

Number of days in a month = 30 days

So, the principal balance after the beginning of November month is

= Monthly interest ÷ (Interest rate × (Number of days in a month ÷ total number of days in a year)

= $155 ÷ (0.1025 × (30 days ÷ 360 days))

= $18,146.34