After how many days will a loan of $888 at 15% amount to $1554 (including accrued interest)?
A) 1825 days
B) 365 days
C) 100 days
D) 2,025 days
E) 525 days

Question

Quizplus · Accepted Answer

The amount after interest can be calculated using the formula A = P(1 + rt), where A is the amount, P is the principal, r is the rate per time period, and t is the time in the same units as r. Here, A = $1554, P = $888, r = 15% or 0.15 per year, and we need to find t in days. Rearranging the formula to solve for t gives t = (A/P - 1) / r. Plugging in the numbers, t = (($1554/$888) - 1) / 0.15 = 0.75 years. Since 1 year = 365 days, t = 0.75 * 365 = 273.75 days. However, since this exact number of days is not an option and the calculation mistake was made in converting years to days (the correct calculation should involve directly solving for days, considering the interest accumulation over days, not years), the closest correct choice given the options and assuming a direct calculation mistake would be 1825 days, which indicates a misunderstanding in the calculation process.

After How Many Days Will a Loan of $888 at 15