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

Algebra
Tutor: None Selected Time limit: 1 Day

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

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Jun 20th, 2015
...
Jun 20th, 2015
Dec 6th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer