Question #292375

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.


1
Expert's answer
2022-01-31T14:22:10-0500

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},

(1+i×12/731+i×3/73)365=60/57.5,(\frac{1 + i×12/73} {1 + i×3/73})^{365} = 60/57.5,

1.0001166×(1 + 3/73i) = 1 + 12/73i,

i = 0.00095 per annum.


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