Jami's Home Repair borrows $3,000, at 12.75% interest, for 330 days. Use the exact interest method to find the amount of interest that the bank will collect. (Round to the nearest cent)
A) $300.00
B) $340.00
C) $345.82
D) $5,200.00

Question

Quizplus · Accepted Answer

The exact interest method calculates interest using a 365-day year. The formula for exact interest is: Interest = Principal × Rate × Time, where Time is in years. For this problem, Interest = $3,000 × 12.75% × (330/365) = $3,000 × 0.1275 × 0.9041 = $345.82 (rounded to the nearest cent).

Jami's Home Repair Borrows $3,000, at 12