Ben Young borrowed $5,000 on April 19 from Reliance Bank at a rate of 6.75%. Ben must repay the loan on December 16 of the same year. Assuming the loan is based on exact interest, what is the total interest cost?

Name: Ben Young borrowed $5,000 on April 19 from Reliance Bank at a rate of 6.75%. Ben must repay the loan on December 16 of the same year. Assuming the loan is based on exact interest, what is the total interest cost?
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Question

Quizplus · Accepted Answer

I = $5,000 × .0675 × 241/365 = $222.84

Ben Young Borrowed $5,000 on April 19 from Reliance Bank