Joan Roe borrowed $85,000 at a rate of 11 3/4%. The date of the loan was July 8. Joan is to repay the loan on Sept. 14. Assuming the loan is based on exact interest, the interest Joan will pay on Sept. 14 is:
A)$86,860.68
B)$1,860.68
C)$1,886.53
D)$86,886.53
E)None of these

Question

Quizplus · Accepted Answer

Interest = Principal x Rate x TimeInterest = $85,000 x 11.75% x 67/360Interest = $85,000 x 0.1175 x 0.1861Interest = $1,860.68

Joan Roe Borrowed $85,000 at a Rate of 11 3/4