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T-Mobile LTE Done 14. 1.00 points 11:39 AM * 51%. \" ezto.mheducation.com On Sep

ID: 1171521 • Letter: T

Question

T-Mobile LTE Done 14. 1.00 points 11:39 AM * 51%. " ezto.mheducation.com On September 12, Jody Jansen went to Sunshine Bank to borrow $3,700 at 12% interest. Jody plans to repay the loan on January 27. Assume the loan is on ordinary interest. (Use Days a What ordinary interest will Jody owe on January 27? (Do not round intermediate calculations. Round your answers to the nearest cent.) Days in yeart Days in year 2 Calculation of interes b. What is the total amount Jody must pay at maturity? Hints References eBook & Resources

Explanation / Answer

Number of days in year 1 = 19 days of September + 31 days of October + 30 days of November + 31 days of December = 111 days

Number of days in year 2 = 27 days of January

Days in Year 1

111

Days in Year 2

27

138

Principal

x

Rate

x

Time

=

Interest

Calculation of interest

$ 3,700.00

x

12%

x

138

=

$ 170.20

360

b.

Total amount of paid at maturity = $3,700 + $170.20 = $3,870.20

Days in Year 1

111

Days in Year 2

27

138

Principal

x

Rate

x

Time

=

Interest

Calculation of interest

$ 3,700.00

x

12%

x

138

=

$ 170.20

360