Question

Joanne and Ed Greenwood built a new barn with an attached arena. To finance the loan, they paid $1,326 interest on $47,600 at 4%. What was the time, using exact interest? (Do not round intermediate calculations. Round up your answer to the nearest day.)

Answer 1

Answer:254 days

Joanne and Ed Greenwood built a new barn with an attached arena. To finance the loan, they paid $1,326 interest on $47,600 at 4%. What was the time, using exact interest? (Do not round intermediate calculations. Round up your answer to the nearest day.)

Step-by-step explanation

Note that

Interest is represented by I=1326

The principal is represented by P=47,600

Rate is R =4%

And Time is year

Interest is calculated using the formulae,

I =PRT/100

From the above formulae, time can be calculated as

T=100I/PR

T= 100×1326/(47600×4)

T= 132600/190400

T= 0.6964 years

To convert to days, multiply by 365(since those no of days make a year)

T= 0.6964×365=254 days

This was approximated to the nearest day

Answer is 254 days