Find the exact interest to the nearest cent.
-$4,900 at 5% for 189 days
A)$128.63
B)$126.86
C)$12.69
D)$12.86

Question

Quizplus · Accepted Answer

We can use the formula: 
Interest = Principal x Rate x Time

Where the principal is $4,900, the rate is 5%, and the time is 189/365 years (since there are 365 days in a year).

Plugging in those values, we get: 
Interest = $4,900 x 0.05 x (189/365) 
Interest = $126.86

Therefore, the answer is B. We can use the simple interest formula:

I = Prt

where:
I = interest
P = principal (amount of money)
r = interest rate (as a decimal)
t = time (in years)

However, since the time given is in days, we first need to convert it to years:

189 days ÷ 365 days/year ≈ 0.5178 years

Now we can plug in the values:

I = 4900 × 0.05 × 0.5178 ≈ $126.86

Rounding to the nearest cent, we get $126.86, which is closest to choice B. Hence, the answer is B.

Find the Exact Interest to the Nearest Cent