SOLUTION: Ron borrows $17,200.00 at 10% on March 22 and repays the loan on June 5. the bank charges ordinary interest using exact time.

Question 251924: Ron borrows $17,200.00 at 10% on March 22 and repays the loan on June 5. the bank charges ordinary interest using exact time.

Answer by drk(1908) (Show Source): You can put this solution on YOUR website!
This is an IPRT problem: Interest = principal x rate x time. As we read the problem, place the numbers where they go. P = $17,200, R = .10. Be careful with time, it is measured in years. March 22 is on day 91 and June 5 is on day 155. To find the number of days, 155 - 91 + 1 = 65. So, T = 65/365 since time is measured in years. Put all of this together and you get I = 17200(.10)(65/365).
So, I = $306.30. If this is your question, you would stop here, however, if you want the total repaid on the loan including interest, you would add principal to interest to get $17,506.30.
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