Compute the following using “ordinary interest”

Question

You invest $11,900.00 at 6% for 50 days. What is the maturity value?

Answer 1

Ordinary Interest formula is:

I=PR(D/360)

 

I (Ordinary interest) final answer

P (Principle) original amount

R (Rate or interest) in decimal form

D (Number of days)

 

Plug the information into the formula, then type into your calculator exactly like this:

 

I= 11900 x .06 x 50/360

 

ANSWER: $97.81