# math word problem ?

A company borrows ​\$11 comma 000 at 5​% for 90 days. Find ​(a) the amount of interest due and ​(b) the total amount that must be paid after 90 days.

Relevance
• 11,000 X 90/360 X 5/100= \$11,137.50

• If 5% is the rate for the period of 90 days.

(a) I=\$11,000*5%=\$550

(b) A=\$11,000+\$550=\$11,550.

If the annual interest rate is 5%.

(a) I=\$11,000*5*90/36500=\$135.62

(b) A=\$11,000+\$135.62=\$11135.62.

• C borrows \$11,000 @ 5% per annum for 90 days.;

(a) Interest due after 90 days = 5%(90/360) of \$11000 = \$550/4 = \$137.50.;

(b) Total amount due after 90 days = \$(11,000 + 137.50) = \$11,137.50.;

• A company borrows ​\$11,000 at 5​% for 90 days.

(a)

the amount of interest due is \$135.62

and

​ (b)

the total amount that must be paid after 90 days is \$11,135.62.

• You asked a similar question yesterday, with different numbers, with the same missing information.

• Financial calculations are typically done with the assumption of 30 day months and 360 day years. Hence financial institutions would consider 90 days as 3 months or 1/4 of a year.

I = 0.05*11000/4 = 550/4 = \$137.50

A = 11000+137.50 = \$11137.50

•  A company borrows ​\$11,000 at 5​% for 90 days.

(a)

the amount of interest due is \$135.62

and

​ (b)

the total amount that must be paid after 90 days is \$11,135.62.

• \$11000 x 0.05 = \$550 per complete year.

Assuming we have 365 days/year then,

(90/365) x \$550 = \$135.62...interest

Hence, \$11000 + \$135.62 = \$11135.62 is repaid

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