Questions: Tessa obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 3.6%. Her loan is for 15,600 for 78 days. Assume 1 year = 365 days. a) Find the interest that will be owed after 78 days. b) Assuming Teresa doesn't make any payments, find the amount owed after 78 days. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. 201.13 15,721.13

Tessa obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 3.6%. Her loan is for 15,600 for 78 days. Assume 1 year = 365 days. a) Find the interest that will be owed after 78 days. b) Assuming Teresa doesn't make any payments, find the amount owed after 78 days. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. 201.13 15,721.13
Transcript text: Tessa obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 3.6%. Her loan is for $15,600 for 78 days. Assume 1 year = 365 days. a) Find the interest that will be owed after 78 days. b) Assuming Teresa doesn't make any payments, find the amount owed after 78 days. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. $201.13 $15,721.13
failed

Solution

failed
failed

Solution Steps

Step 1: Calculate the Daily Interest Rate

To find the daily interest rate, we divide the annual interest rate by the number of days in a year.

$$r_{daily} = \frac{r}{n} = \frac{0.036}{365}$$

This gives us a daily interest rate of 0.

Step 2: Calculate the Interest for the Loan Duration

Next, we calculate the total interest accrued over the loan duration using the formula:

$$I = P \times r_{daily} \times t = 15600 \times 0 \times 78$$

The total interest accrued over the period is $120.01.

Step 3: Calculate the Total Amount Owed

Finally, we find the total amount owed by adding the interest to the principal:

$$A = P + I = 15600 + 120.01$$

The total amount owed after 78 days is $15720.01.

Final Answer:

The interest accrued over 78 days is $120.01, and the total amount owed is $15720.01.

Was this solution helpful?
failed
Unhelpful
failed
Helpful

Questions asked by other users

failedAnswered
Which r-value represents the most moderate correlation? -0.92 -0.18 0.56 0.83
failedAnswered
Which kind of animal does the author NOT see on the trip to Antarctica? Select one answer. A penguin B huge white bird c elephant seal D great white shark
failedAnswered
The adjusting entry to recognize the portion of prepaid insurance that was used during an accounting period includes a square to the prepaid insurance account and a square to the insurance expense account. (Enter either debit or credit in each blank)
failedAnswered
Use the display of data to find the standard deviation. The standard deviation is approximately □. (Do not round until the final answer. Then round to the nearest hundredth as needed.)
failedAnswered
Divide as indicated. (12x^2+16)/(x-5) ÷ (15x^2+20)/(x^2-25) Select the correct choice below and fill in the answer box(es) to complete your choice. (Simplify your answer. Use integers or fractions for any numbers in the expression. Use a comma to separate answers as needed) A. (12x^2+16)/(x-5)+(15x^2+20)/(x^2-25)=, x ≠ B. (12x^2+16)/(x-5) ÷ (15x^2+20)/(x^2-25) = no numbers must be excluded.