karen's katering borrowing $4,500, ​at 8.5% interest,for 260 days. if the bank u

label Algebra
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account_balance_wallet $5

karen's katering borrowing $4,500, at 8.5% interest,for 260 days. if the bank usues the exact interest method, how much interest will the bank collect? round to the nearest cent.

Jun 20th, 2015

Thank you for the opportunity to help you with your question!

A = P(1 + rt); R = r * 100

Where:

  • A = Total Accrued Amount (principal + interest)
  • P = Principal Amount
  • I = Interest Amount
  • r = Rate of Interest per year in decimal; r = R/100
  • t = Time Period involved in months or years

From the base formula, A = P(1 + rt) derived from A = P + I and I = Prt so A = P + I = P + Prt = P(1 + rt)

Therefore in this case interest=4500*8.5/100*8.6/12

    4500 × 0.085 × 8.5 to get that:

                         =$3251.25

  To the nearest cent=$3251.20






Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 20th, 2015

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