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pogonyaev
3 years ago
13

PR newswire reported on a company that received a short-term loan the loan was dated April 12th 2006 to April 30th 2006 the rate

of interest was 6.5% the interest earned was $162.50 using the ordinary interest what was the original amount of the loan​
Business
1 answer:
k0ka [10]3 years ago
5 0

Answer:

The amount of Original Interest is $47,368.421

Explanation:

The original amount of the loan is computed as by using the ordinary interest:

Ordinary Interest = Original Amount × 360 / Rate of Interest × Number of Days

where

Original Amount is $162.50

Rate of Interest is 6.5%

Number of Days is 19 (April, 12 2006 to April, 30 2006)

Putting the values in the above:

= $162.50 × 360 × 100 / 6.5 × 19

= $5,850,000 / 123.5

= $47,368.421

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3 years ago
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1 year ago
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