Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.)

Name: Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.)
Brand: Quizplus
Rating: 4.9 (57 reviews)

Question

Quizplus · Accepted Answer

The interest is calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $25,000, Rate = 7% or 0.07, and Time = 90/360. So, Interest = $25,000 x 0.07 x (90/360) = $437.50.

Jasper Makes a $25,000, 90-Day, 7% Cash Loan to Clayborn