Answer to Question #306678 in Mechanical Engineering for Jhay

Question

8.) P 8500 is borrowed for 70 days at 18% per annum. How much will be due at the end of 70 days? Use exact simple interest.

Answer 1

A = P₀ + I = P₀ + P₀r = P₀ (1 + r)

I is the interest;

A is the end amount: principal plus interest;

P₀ is the principal (starting amount);

r is the interest rate (in decimal form)

r = 18% : 365 days × 70 days = 3.45% or 0.0345

A = 8500 (1 + 0.0345) = 8793