Question

Find how long in days David Wong must invest $23,500 of his company's cash at 8.4% in order to earn $652.50 in interest.

Answer 1

I'm assuming he's investing $23,500 per day, correct?

Answer 2

Oh, wait I get it now. I misread the question xD

Answer 3

Well, assuming you have access to a calculator while answering this question the easiest way is to simply do 23,500 multiplied by 0.084 which equates to 8.4% of the original amount. This gives us 1974. Now normally 8.4% is annually, this question doesn't specifically state that, so I'm going to assume it's annually. So divide 1974 by 365 and you'll get 5.408 (roughly).

Answer 4

Would that be days?

Answer 5

That's the amount of money he'll be making per day. so if you divide 652.50 by 5.408 you'll get 120.65. So round it off to 121 days as most interest goes through at midnight, I believe, and there's your answer.

Answer 6

Yup. His annual income from interest would be 1974, so you would divide that by 365 to get your daily amount.

Answer 7

Thank you, that is exactly what I got,..Thank you big time for the quick response!!

Answer 8

No problem :) Glad I could help.