Problem
Complete the following, using ordinary interest. (Use Table 7.1) Note: Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent. \begin{tabular}{|c|r|c|c|r|r|r} \hline \multicolumn{1}{|c|}{ Principal } & Interest rate & Date borrowed & Date repaid & Exact time & Interest & Maturity value \\ \hline$\$ 585$ & $9 \%$ & June 05 & December 15 & 193 & \\ \hline \end{tabular}
Solution
Step 1 ：Convert the interest rate from percentage to decimal form: \(R = 9\% = 0.09\)
Step 2 ：Convert the time from days to years: \(T = \frac{193}{360} = 0.5361\) years
Step 3 ：Calculate the interest using the formula \(I = PRT\): \(I = 585 * 0.09 * 0.5361 = 28.24\)
Step 4 ：Calculate the maturity value by adding the principal and the interest: \(Maturity Value = P + I = 585 + 28.24 = 613.24\)
Step 5 ：\(\boxed{Interest = 28.24, Maturity Value = 613.24}\)
