Find the exact interest on a loan of $7500 at 13% annually made on July 17 and due November 30.
A) $363.29
B) $355.27
C) $368.33
D) $360.21

Question

Quizplus · Accepted Answer

The first step is to find the time period for which the interest is to be calculated.

July has 31 days, August has 31 days, September has 30 days, October has 31 days and November has 30 days.

So, the total number of days from July 17 to November 30 is:

31 + 31 + 30 + 31 + 30 + 13 = 166 days

Using the simple interest formula,

Simple Interest = (Principal x Rate x Time)/100

Where the principal is $7500, the rate is 13% per annum and the time is 166 days.

Converting the time to years:

Time = 166/365

Time = 0.4548

Using this value in the formula:

Simple Interest = (7500 x 13 x 0.4548)/100

Simple Interest = $363.29

Therefore, the exact interest on the loan is $363.29. The closest option is A, $363.29.

Find the Exact Interest on a Loan of $7500 at 13