Tony's Towing borrows $12,250, at 9.5% interest, for 320 days. If the bank uses the exact interest method, how much interest will the bank collect? (Round to the nearest cent)
A) $304.17
B) $1,020.00
C) $1,020.27
D) $1,272.47

Question

Quizplus · Accepted Answer

The exact interest method uses the formula: Interest = Principal x Rate x Time/365. Plugging in the values: Interest = $12,250 x 0.095 x 320/365 = $1,020.27.

Tony's Towing Borrows $12,250, at 9