Subjects finance

Ordinary Interest

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Ordinary Interest


1. **State the problem:** Calculate the ordinary interest on a principal of 65250 at an interest rate of 9.5% from March 12, 2020, to September 15, 2020, using actual time. 2. **Calculate the time period in days:** - From March 12 to September 15 is 187 days (counting actual days). 3. **Formula for ordinary interest:** $$I = P \times r \times \frac{t}{360}$$ where $P$ is principal, $r$ is annual interest rate (decimal), and $t$ is time in days. 4. **Substitute values:** $$I = 65250 \times 0.095 \times \frac{187}{360}$$ 5. **Calculate:** $$I = 65250 \times 0.095 \times 0.5194 = 65250 \times 0.049343 = 3219.91$$ 6. **Interpretation:** The ordinary interest for the given period is approximately 3219.91. **Final answer:** $$\boxed{3219.91}$$