On May 19, Bette Santoro borrowed $3,000 from Resse Bank at a rate of 12½%. The loan is to be repaid on October 8. Assuming the loan is based on exact interest, what is the total interest cost to Bette?

Name: On May 19, Bette Santoro borrowed $3,000 from Resse Bank at a rate of 12½%. The loan is to be repaid on October 8. Assuming the loan is based on exact interest, what is the total interest cost to Bette?
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Quizplus · Accepted Answer

Days = 12 + 30 + 31 + 31 + 30 + 8 = 142 days; $145.89 = $3,000 × .125 × 142/365.

On May 19, Bette Santoro Borrowed $3,000 from Resse Bank