On January 5, Steven received a $25,000 advance on a revolving line of credit at 3.75% annual rate. On march 5, the annual rate increased to 4.25%. Determine the interest to be paid from January 5^th to August 15^th. A) $626.03 B) $632.03 C) $638.03 D) $644.03 E) $650.03

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The interest for the period from January 5th to March 5th is calculated as follows:Interest = Principal x Rate x TimeInterest = $25,000 x 3.75% x (60/365)Interest = $25,000 x 0.0375 x 0.1644Interest = $156.25The interest for the period from March 5th to August 15th is calculated as follows:Interest = Principal x Rate x TimeInterest = $25,000 x 4.25% x (163/365)Interest = $25,000 x 0.0425 x 0.4466Interest = $469.78The total interest to be paid from January 5th to August 15th is $156.25 + $469.78 = $626.03.

On January 5, Steven Received a $25,000 Advance on a Revolving