Question

Suppose that Jane borrows $8400 from a bank on April 9 at an annual rate of 9.2% simple interest. How much does she owe on August 20 of the same year?

Answer 1

Total amount of money that jane has will be $8674.576

Explanation:

Given data:

Time duration from 9 april to 20th august

so total number of days is = 21 ( of april) + 31 +30 +31 +20 ( august) = 123

We know that,

simple interest is given as

`simple\  interest = (P* R* T)/(100)`

where, P is principle = 8400

T = time = 123 ÷ 365

R = Rate = 9.2

so we have Simple Interest
`= (8400* 123* 9.2)/(365* 100)`

simple interest = $274.576

Total amount of money that jane has will be

= 274.576 + 8400 = $8674.576