drill problem 10 - 4 (algo) lu 10 - 1 (2) required: complete the following, using ordinary interest. (use…

drill problem 10 - 4 (algo) lu 10 - 1 (2) required: complete the following, using ordinary interest. (use days in a year table.) note: do not round intermediate calculations. round the \interest\ and \maturity value\ to the nearest cent. principal $2,100 interest rate 5% date borrowed march 10 date repaid june 14 exact time 96 interest maturity value

drill problem 10 - 4 (algo) lu 10 - 1 (2) required: complete the following, using ordinary interest. (use days in a year table.) note: do not round intermediate calculations. round the \interest\ and \maturity value\ to the nearest cent. principal $2,100 interest rate 5% date borrowed march 10 date repaid june 14 exact time 96 interest maturity value

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$2100$, $r = 0.05$ (since $5%=0.05$), and $t=\frac{96}{360}$ (using ordinary interest where there are 360 days in a year).

Step2: Calculate the interest

$I=Prt=2100\times0.05\times\frac{96}{360}$ $I = 2100\times0.05\times\frac{4}{15}$ $I=\frac{2100\times0.05\times4}{15}$ $I=\frac{420}{15}=28$

Step3: Calculate the maturity value

The maturity value $M$ is the sum of the principal and the interest, $M = P+I$. $M=2100 + 28=2128$

Answer:

Interest: $$28$ Maturity value: $$2128$