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Drupady [299]
3 years ago
14

Jasper makes a $25,000, 90-day, 7% cash loan to clayborn co. the amount of interest that jasper will collect on the loan is:

Business
1 answer:
scZoUnD [109]3 years ago
5 0
This a simple interest question with the principal = $25,000 time = 90 days and rate = 7%.
The simple interest in an investment after t days is given by PRT / (100 x 360). where P = $25,000 R = 7% and T = 90

S.I = (25000 x 7 x 90) / (360 x 100) = 15750000 / 36000 = 437.5

Therefore, the amount of interest Jasper will collect is $437.50
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