Question

Hi all, I have a "problem" that says: find the amount by which the ordinary interest is larger than the exact interest. Round to the nearest cent. So the principle is $13,600, the rate is 11% and the time is 280 days. For the "ordinary" I get $1163.50 and for the exact, I get $1147.62. Which the diff would be 15.88 (my answer) The list of "multiple choices" I had were $17.44, 15.94, 1163.56 and 14.44. According the grading, the answer was 15.94. I would love help with these so that when I take my exam I will know where I am "off". ty much,

Answer 1

I am getting into Wolfram/alpha thanks to some smart peeps on here and so I can put in my formula to check what I get there. I have a calculator (TI-36X Solar) but haven't got around to learning how it all works so I think I get the wrong answers on it at times, but plug in the formula on Wolfram and get the right answer. But on the above, I am not getting the right answer from either.

Answer 2

http://www.wolframalpha.com/input/?i=%2413%2C600%28.11%29280%2F360+-+%2413%2C600%28.11%29280%2F365

Answer 3

Ok, let me go look Stamp. I know I = P X R X T. brb, denise:) and thank youuuuuu much:)

Answer 4

Omg, you got the 15.94!! I will try again, I sware my formula is the same! It's written on paper right in front of me but I am missing something in the calculation.

Answer 5

If I take the 360 and divide it into the 280 I get .78, and if I divide the 280 by 365 I get .77 and it doesn't come out at 15.94.

Answer 6

I'm just going to follow your lead and put in my calc. on Wolfram as you did for those types of problems:)
Thank you again, Denise!!