Use the Exact Method (365 Days) and the Ordinary Interest

question 110

Short Answer

Use the exact method (365 days) and the ordinary interest method (360 days) to compute the amount of interest for the following loan, rounding to the nearest cent: $$\begin{array} { l l l l l } \text { Principal } & \text { Rate } & \text { Time } & \text { Exact Interest } & \text { Ordinary Interest } \\\$ 40,000 & 14 \% & 100 \text { days } &\end{array}$$

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Definitions:

Direct Materials

Ingredients essential to the production of a product, which can be directly linked to its manufacture and are integral to the completed item.

Time Tickets

Documents used to record the amount of time an employee spends on various tasks, which is useful for cost accounting purposes.

Materials Requisitions

Documents used to request and track the transfer of materials from inventory for production or other uses within a company.

Work in Process Inventory

Items that are currently being manufactured but have not yet reached completion.