Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.3 Simple Interest - Exercise Set 8.3: 42

Answer

The statement does not make sense.

Work Step by Step

The statement does not make sense. The Banker's Rule calculates interest based on 360 days per year instead of 365 days per year. This method of calculating interest results in a slightly higher amount of interest. Therefore, a person would not save money on a loan by using the Banker's Rule. By using the Banker's Rule, a borrower would have to pay a slightly higher amount of interest.
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