There is a bill of S/7,000 soles that matures on November 9 and was negotiated with the bank on August 5 of the same year with an interest of 24%. How much do I pay the bank?

Accepted Solution

The time between August 5 and November 9 is 96 days (31 days in August, 30 days in September, 31 days in October, and 4 days in November). The interest on the bill is calculated using the simple interest formula: I = P * r * t where I is the interest, P is the principal (the amount of the bill), r is the interest rate (24% or 0.24), and t is the time in years (96/365 or approximately 0.263). Substituting the values, we get: I = 7,000 * 0.24 * 0.263 I = 441.84 Therefore, the interest on the bill is S/437.04 soles. Adding this to the principal, we get the total amount that needs to be paid to the bank: Total amount = Principal + Interest Total amount = 7,000 + 441.84 Total amount = 7,441.84 Therefore, you need to pay S/7,441.84 soles to the bank.