May. 15, 2010, Leven Corp. negotiated a short-term loan of $703,000. The loan is due Oct. 13, 2010, and carries a 7.04% interest rate. Use ordinary interest to calculate the interest.
What is the total amount Leven would pay on the maturity date?(Use table value.) (Use 360 days a year. Do not round intermediate calculations. Round your answer to two decimal places. Omit the "$" sign in your response.)
Maturity value $
First calculate the interest.
The simple interest formula is Interest=PrincipalxRatexTime or I=PRT
Count the number of days from May 15-October 13.
Then divide that by 365 to get the time.
So you end up with I=703000x.0704x(151/360)
Then add your answer to the original loan amount and then round that answer to get the total amount.
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