document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1162470>Question 1162470</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A-	A businessperson took out a loan of $ 120,000 from the Bank at a simple interest rate of 5% on June 12, which is due on August 16.\r<BR>\n" );
document.write( "\n" );
document.write( "				      	       <BR>\n" );
document.write( "a)	Find the number of days of the loan from June 12 until August 16.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "b)	Using exact interest, find the interest amount (I=?). \r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "B-	A dealer borrowed $5000 on a 110-day 2% simple interest note. He paid $1000 toward the note on day 30. On day 80 he paid an additional $1000. Assume 360-day year, what is his ending balance due? 				       		                 \r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "c- A Supplier borrowed $ 89,600.  The loan was for 14 months at a simple interest rate of 3%.  What is the interest and the maturity value?  			                 \r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #786293 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=786293\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> a is 65 days or 65/365 of a year (they want exact, and that is exact, unless one was taught to always use 360, in which case the answer will be slight different.<BR>\n" );
document.write( "I=prt=120000*0.05*65/365=$1068.49 interest\r<BR>\n" );
document.write( "\n" );
document.write( "after day 30 interest if 5000*0.02*30/360=$8.33 so at day 30 he owed $5008.33-$1000 or $4008.33<BR>\n" );
document.write( "in 80 more days it is $4008.33*0.02*80/3260=$17.81 interest so loan is now $4026.14.  Pays off $1000 and now owes $3026.14<BR>\n" );
document.write( "that *0.02*250/360 (days left in year) is $42.03 interest, so what will be due is $3068.17.\r<BR>\n" );
document.write( "\n" );
document.write( "I=$89600*(0.03)(14/12)=$3136 interest<BR>\n" );
document.write( "maturity value is that and starting amount of $92,736 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );