00:01
A certain amount of money and at the end of 160 days we're going to have to pay $200.
00:07
Or at the end of 40 days, we can pay $190.
00:15
So what is the interest rate? well, i'm looking at this.
00:19
That would mean that in 120 days, then we were charged $10 in interest.
00:27
Of a certain amount of money and at the end of the 100 equals principle times rate times time my interest is $10 when i have a principal which we don't know quite yet in a rate of 10 days out of 365 so the question that becomes can we determine what the principle is of a certain amount of money and at the end of the 100 of the loan on this day right here then 120 days later we were only charge $10 in interest.
01:06
So my principal for that length of time would have been 190.
01:11
So we have 10 that's going to be 190 times my rate, times my days, which is 120 over 365.
01:19
Now let's go get the calculations here.
01:21
I'm going to multiply by 365.
01:24
So it'll be 36510.
01:27
It's going to be 190 times 120 times r...