Question

On April 5, 2015, Janeen Camoct took out an 8% loan for $23,000. The loan is due March 9, 2016. Janeen's terms are ordinary interest. Sabrina Bowers took out the same loan as Janeen. Sabrina’s terms, however, are exact interest. (Use Days in a year table.) a. What is Sabrina’s difference in interest? (Do not round intermediate calculations. Round your answer to the nearest cent.) Difference $ b. What will she pay on March 9, 2016? (Ignore leap year.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount $ rev: 03_08_2017_QC_C

Answer 1

a
Loan Amount	23,000
Ordinary Interest (23000*8%/360*339)	1,732.67
Exact interest (23000*8%/365*339)	1,708.93
Difference in interest	23.74

b
Loan Amount	23,000
Exact interest	1,708.93
Payment	24,708.93

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