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

question 140

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: $$\begin{array} { l l l l l } \text { Principal } & \text { Rate } & \text { Time } & \text { Exact Interest } & \text { Ordinary Interest } \\\$ 2,500 & 12.5 \% & 20 \text { days } &\end{array}$$

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Definitions:

Activities of Daily Living

Routine tasks that individuals do every day without needing assistance, such as eating, bathing, dressing, and mobility.

Independent

Free from outside control; not depending on another's authority or on specific factors.

Maslow's Hierarchy

A theory in psychology that categorizes human needs into a five-tier model, from basic (such as food and shelter) to complex (such as self-fulfillment).

Mental Illness

Refers to a wide range of mental health conditions that affect mood, thinking, and behavior.