1. **State the problem:** Find the loan amount given that a loan was taken on 20 August 2020 at 7% simple interest and was paid off on 31 December 2020 with a payment of 9299.25. 2. **Calculate the term of the loan in days using Banker's Rule:** Banker's Rule assumes 360 days in a year. From 20 August to 31 December: - August: 31 - 20 = 11 days - September: 30 days - October: 30 days - November: 30 days - December: 31 days Total days = 11 + 30 + 30 + 30 + 31 = 132 days 3. **Set up the simple interest formula:** Simple Interest (SI) = Principal (P) × Rate (R) × Time (T) Here, Time $T = \frac{132}{360}$ years, Rate $R = 7\% = 0.07$, and Total Amount $A = 9299.25$ 4. **Express total amount:** $$A = P + SI = P + P \times R \times T = P(1 + RT)$$ 5. **Substitute known values and solve for $P$:** $$9299.25 = P \left(1 + 0.07 \times \frac{132}{360}\right)$$ Calculate the term inside parentheses: $$0.07 \times \frac{132}{360} = 0.07 \times 0.3667 = 0.02567$$ So, $$9299.25 = P (1 + 0.02567) = P (1.02567)$$ 6. **Calculate $P$:** $$P = \frac{9299.25}{1.02567} \approx 9067.50$$ **Final answer:** The loan amount is approximately 9067.50.