Question

Find the interest on the loan using the Banker's rule.P= $650, r= 10.8%, t= 120 daysThe interest on the loan using the Banker's rule is $Х$

Answer 1

Given:

$\begin{gathered} P=650 \\ r=10.8 \\ t=120 \end{gathered}$$I=P\times r\times t$

In banker rule time t will be written as:

$=\frac{Exact\text{ time}}{360}$

So time is:

$t=\frac{120}{360}$$\begin{gathered} r=\frac{10.8}{100} \\ =0.108 \end{gathered}$$\begin{gathered} I=P\times r\times t \\ =650\times0.108\times\frac{120}{360} \\ =\frac{8424}{360} \\ =23.4 \end{gathered}$