Janet took out a loan of $50,000 from Bank of America at 8% on March 19, 2015, which is due on July 8, 2015. Using exact interest, the amount of Janet's interest cost is:

Question

Mathematics

Strickland

3 March, 05:59

Janet took out a loan of $50,000 from Bank of America at 8% on March 19, 2015, which is due on July 8, 2015. Using exact interest, the amount of Janet's interest cost is:

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Amiyah Cross · Answer 1

The formula for this is I = PRT

I = Interest

P = Principal (starting amount) = $50,000

R = Rate (percentage) = 8% =.08

T = Time in years = days/years = 111/365

I = 50000 (.08) (111/365)

I = $1216.438

I = $1216.44 (rounded)