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KatRina [158]
2 years ago
8

Round all answers to nearest cent. Lou Valdez is buying a truck. His monthly interest was $155 at 10 1/4 % interest. What is Lou

's principal balance after the beginning of November? Use 360 days. DO NOT round the denominator in our calculation
Business
1 answer:
Y_Kistochka [10]2 years ago
6 0

Answer:

$18,146.34

Explanation:

Data provided in the question

Monthly interest = $155

Interest rate = 0.1025% which represents the 10 1/4 %

Number of days in a month = 30 days

So, the principal balance after the beginning of November month is

= Monthly interest ÷ (Interest rate × (Number of days in a month ÷ total number of days in a year)

= $155 ÷ (0.1025 × (30 days ÷ 360 days))

= $18,146.34

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