To pay for car repairs, you take out a simple interest loan for $1420 at a rate of 6.5% for 150 days. Answer parts (a) - (c).
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Part 1
a. Find the interest you will pay if the lender uses the Banker's Rule (360 days in a year).
The interest you will pay if the lender uses the Banker's Rule will be $
38.46.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Part 2
b. Find the interest you will pay if the lender uses 365 days in a year.
The interest you will pay if you repay the loan after 150 days is $
37.93.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Part 3
c. How much more interest will you pay if the lender uses the Banker's Rule?
You will pay $
enter your response here more if the lender uses the Banker's Rule.
(Do not round until the final answer. Then round to the nearest cent as needed.)
