To buy a laptop, Susan receives a $2000 loan at a 6.5% annual interest rate on January 10. The loan is due May 15. The year is not a leap year. Find the ordinary interest that Susan will pay for the loan?


2 Answers

Oddman Profile
Oddman answered
The difference in dates is 4 months and 5 days. "Ordinary interest" treats each month as 30 days, so the amount of interest charged is
  = $130*125/360
  ≈ $45.14
Duane Bryant Profile
Duane Bryant answered
A.  Convert 6.5% to decimal form by dividing it by 100
B.  There are 365 days in a non-leap year, so divide answer from A by 365
C.  Add 1 to answer from B
D.  Starting at January 11, count days until May 15 including Jan 11 and May 15
E.  Take Answer from C to the power of answer from D (C^D)
F.  Multiply that times $2000 for total paid
G.  Subtract $2000 from answer F to find total interest paid.

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