Find the interest on the loan using the Banker's rule.
P
=
$
6
0
0
,
r
=
1
2
.
2
%
,
t
=
1
0
5
days

To calculate the interest on the loan using the **Banker's Rule**, we'll use the **ordinary interest formula**, which assumes a 360-day year. The formula is as follows:

\[
I = P \times r \times \frac{t}{360}
\]

Where:
- $I$ is the interest,
- $P$ is the principal amount (\$600),
- $r$ is the interest rate (12.2% = 0.122 in decimal form),
- $t$ is the time in days (105 days).

### Step-by-Step Calculation:
1. Convert the percentage rate to decimal form:  
   $r = 12.2\% = 0.122$
   
2. Use the formula for ordinary interest:

\[
I = 600 \times 0.122 \times \frac{105}{360}
\]

\[
I = 600 \times 0.122 \times 0.2917
\]

\[
I \approx 600 \times 0.035567
\]

\[
I \approx 21.34
\]

### Result:
The interest on the loan is approximately **\$21.34**.

Would you like further details or have any questions about this calculation?

Here are 5 related questions for further exploration:
1. What would the interest be if the loan period was extended to 200 days?
2. How does the interest change if the rate increased to 15%?
3. What is the difference between Banker's Rule and Exact Interest Rule?
4. How would the interest change if calculated using a 365-day year?
5. What would the total amount owed be after 105 days, including interest?

**Tip:** When calculating interest using Banker's Rule, always remember that it assumes a 360-day year, which differs from the calendar year in exact interest methods.

Find the interest on the loan using the Banker's rule. P = $600, r = 12.2%, t = 105 days

Learn how to calculate the interest on a loan of $600 at a rate of 12.2% over 105 days using the Banker's Rule. This detailed explanation covers the ordinary interest formula and shows step-by-step how to find the interest amount of approximately $21.34. Suitable for high school students in Grades 9-12.

Math Problem Statement

Find the interest on the loan using the Banker's rule. P

$ 6 0 0 , r

1 2 . 2 % , t

Solution

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