Drive with Us is an automobile retailer and pays floor plan financing to finance the cars they hold in inventory. If the interest rate on their floor plan financing is 6 percent, how much do they pay in interest per day on a car with a wholesale price of $50,000?

Question

Quizplus · Accepted Answer

The first step is to calculate the interest per year on a car with a wholesale price of $50,000 at a 6% interest rate:
$50,000 x 0.06 = $3,000
Then we divide the yearly interest by the number of days in a year to find the daily interest:
$3,000 / 365 = $8.22
Therefore, the answer is C, $8.22 per day.

Drive with Us Is an Automobile Retailer and Pays Floor