A man is required to pay 57500 pesos at the end of 15 days of 60000 pesos at the end of 60 days. Determine the rate of interest.
The rate of interest is:
57500/(1+i×15/365)365=60000/(1+i×60/365)365,57500/(1 + i×15/365)^{365} = 60000/(1 + i×60/365)^{365},57500/(1+i×15/365)365=60000/(1+i×60/365)365,
(1+i×12/731+i×3/73)365=60/57.5,(\frac{1 + i×12/73} {1 + i×3/73})^{365} = 60/57.5,(1+i×3/731+i×12/73)365=60/57.5,
1.0001166×(1 + 3/73i) = 1 + 12/73i,
i = 0.00095 per annum.
Need a fast expert's response?
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!
Comments