On January 20, Samantha borrowed $17,000 from her revolving line of credit. The current annual interest rate at the time was 4.5%. On May 5, Samantha borrowed another $10,000. Due to an increase in borrowing, the annual interest rate increased to 4.75%. On August 12, Samantha repaid the total amount borrowed, along with interest. Determine the interest amount to be repaid.
A) $516.35
B) $544.22
C) $567.92
D) $606.38
E) $641.12

Question

Quizplus · Accepted Answer

The interest for the first loan of $17,000 from January 20 to August 12 at 4.5% is calculated for 204 days. The interest for the second loan of $10,000 from May 5 to August 12 at 4.75% is calculated for 99 days. The total interest is the sum of these two amounts, which is approximately $567.92.

On January 20, Samantha Borrowed $17,000 from Her Revolving Line