Ruth Brown wants to borrow $2,600 for 90 days to pay her real 'estate tax. State Savings and Loan charges 7.25% ordinary interest while Security Bank charges 7.5% exact interest. A. What is the maturity value of each loan? B. Where should they borrow the money?

Step-by-step explanation:

Ordinary interest rate = principal × rates × ( time / 360)

exact interest rate = principal × rates × ( time / 365)

for states saving and loan of rate 7.25 %

ordinary interest rate = $ 2600 × 0.0725 × ( 90 / 360) = $ 47.125

total amount due after 90 days = $ 2647.125

for Security Bank of 7.5%

exact interest = $2600 × 0.075 × ( 90 / 365) = $ 48.75

amount due after 90 days = $ 2600 + $ 48.75 = $ 2648.75

b) considering the amount to be paid at maturity it is better to borrow state savings and Loan although the difference is not really much.

f(x) is the value of the function. b is the value of the function when x equals zero or the y-coordinate of the point where the line crosses the y-axis in the coordinate plane.

step-by-step explanation:

hope this !

probably the last option

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