Joyce took out a loan for $21,900 at 12% on March 18, 2013, which will be due on January 9, 2014. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of:
A)$2,167.10
B)$24,068.10
C)$24,038.40
D)$2,138.40
E)None of these

Question

Quizplus · Accepted Answer

Ordinary interest is calculated using the formula I = PRT/360. The time from March 18, 2013, to January 9, 2014, is 297 days. The interest is $21,900 * 0.12 * 297/360 = $2,168.10. The total amount is $21,900 + $2,168.10 = $24,068.10.

Joyce Took Out a Loan for $21,900 at 12% on March