Question

Complete the following using exact interest. (Use Days in a year table) (Do not round intermediate calculations. Round the "Interest" and "Maturity value to the nearest cent.) Interest rate Exact time Interest Maturity value Principal $ 1.000 Date borrowed Mar 08 Date repaid Jun 09

Answer 1

SOLUTION:
Principal	Interest Rate	Date Borrowed	Date Repaid	Exact Time	Interest	Maturity Value
$                                       1,000	8%	Mar 08	June 09	16 Months	$             106.67	$          1,106.67
Working Notes:1
Exact Time = From Mar 08 to June ,09 =
Mar 08 to Feb 09 =		12 months
From Mar 09 to June 09 =		4 Months
Total Months		16 Months
Workin Notes:2
Interest = $ 1,000 X 8% for 12 Months =		$                             80.00
Interest @ 8% for 4 Months $ 80 X 12/4 Month =		$                             26.67
Total Interest		$106.67

Answer 2

Exact time: 93 days; interest: 20.67; maturity value: $1,020.67