Answer to Question #306682 in Mechanical Engineering for Jhay

Question

5.) A worker borrowed money on April 20, 1995 and promised to pay 18,000 on march 4, 1996 with 16% interest. Determine the money he has borrowed using exact interest.

Answer 1

n = number days from April 20, 1995 to March 4, 1996

n = 319 days

F = P(i + in)

18,000 = P[1 + 0.16(319/366)]

F = P15,796