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kirill [66]
3 years ago
9

What is the difference between the exact simple interest and the ordinary simple interest on a 200-day loan of 5,000 at 12%

Mathematics
1 answer:
77julia77 [94]3 years ago
6 0

Answer:

  4.56

Step-by-step explanation:

"Ordinary" interest will be more than "exact" interest because the number of days in a year is a smaller value. The difference will be ...

  Io = Prt = 5000(0.12)(200/360) = 333.33

  Ie = Prt = 5000(0.12)(200/365) = 328.77

The difference is ...

  333.33 -328.77 = 4.56 . . . the difference in interest values

_____

<em>Additional comment</em>

The question asks for the difference between exact and ordinary interest, so the result is technically negative:

  328.77 -333.33 = -4.56

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