Recently Mr. Robie, the owner of the Black Cat Bakery, purchased some equipment for the Bakery. Mr. Robie purchased $27,000 in additional equipment, and made a cash down payment of $2,700 .He secured a loan for the remaining $24,300, with an interest rate of 2.5%, and a time period of 180 days. 

 

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The interest for 180 days at 2.5% per annum is 24300×2.5/100×180/365=$299.59.

Total amount to pay is 24300+299.59=$24599.59.

In some calculations of this sort the number of days in the year is put at 360. If we apply this in this problem, the interest would be $303.75, making the amount due $24603.75.

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