document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1129598>Question 1129598</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Given an interest of $11,900 at 6% for 50 days (ordinary interest), calculate the principal.\r<BR>\n" );
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document.write( "A. $1,428,571.40<BR>\n" );
document.write( "B. $1,420.70<BR>\n" );
document.write( "C. $1,487,500.00<BR>\n" );
document.write( "D. $1,428,005.70\r<BR>\n" );
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document.write( "Need the right steps </SPAN>\n" );
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document.write( "The problem is VERY badly formulated.<br><BR>\n" );
document.write( "The interest equation is<br><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=I+=+prt ALIGN=MIDDLE  ALT=\"I+=+prt\"   DISABLED_style= \"max-width:90%; height:auto;\" ><br><BR>\n" );
document.write( "We are given that the interest I is 11900.<BR>\n" );
document.write( "We are given that the annual interest rate is 6%.<BR>\n" );
document.write( "We are given that the time is 50 days.<br><BR>\n" );
document.write( "We are not told whether we are to use 360 or 365 (or some other number) for the number of days in a year.  Since it is common to use 360, I will do that.<br><BR>\n" );
document.write( "Then our interest equation is<br><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=11900+=+p%28.06%29%2850%2F360%29 ALIGN=MIDDLE  ALT=\"11900+=+p%28.06%29%2850%2F360%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=p+=+11900%2F%283%2F360%29+=+11900%2F%281%2F120%29+=+11900%2A120+=+1428000 ALIGN=MIDDLE  ALT=\"p+=+11900%2F%283%2F360%29+=+11900%2F%281%2F120%29+=+11900%2A120+=+1428000\"   DISABLED_style= \"max-width:90%; height:auto;\" ><br><BR>\n" );
document.write( "Using 360 for the number of days in a year, the amount of the principal is (exactly) $1,428,000.<br><BR>\n" );
document.write( "That is not one of the answer choices, although answer choice D is close.; and answer A is in the right ballpark.<br><BR>\n" );
document.write( "But here is where the problem is formulated very badly.<br><BR>\n" );
document.write( "If you convert the 6% annual interest rate to a daily interest rate using 360 days per year and us the decimal approximation 0.00016666, you get answer D.<br><BR>\n" );
document.write( "If you convert the 6% annual interest rate to a daily interest rate using 360 days per year and us the decimal approximation 0.0001666, you get answer A.<br><BR>\n" );
document.write( "But NO DECIMAL APPROXIMATION should be used!  The EXACT answer, using 360 days per year, is $1,428,000. </SPAN>\n" );
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