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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 \$

### 2 Answers by Expert Tutors

Michael F. | Mathematics TutorMathematics Tutor
4.7 4.7 (6 lesson ratings) (6)
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I assume that the calendar is 30/360.  The term of the loan is 148 days, in that calendar, or 148/360 years.
Interest is Principal times rate times time=703000×.0704×148/360=20346.3822..
The total payment due at the loan maturity is 703000+20346.38=723346.28

Stacy D. | I Tutor All Subjects Including SAT, Math and ReadingI Tutor All Subjects Including SAT, Math...
5.0 5.0 (1 lesson ratings) (1)
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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)