A student loan is taken out for $8,700 at 6.2%. Find the interest that accrues in a 30-day month.
A)$44.30
B)$1.48
C)$443.04
D)$45.88

Question

Quizplus · Accepted Answer

The interest that accrues in a 30-day month can be calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $8,700, Rate = 6.2% per annum (or 0.062 per year), and Time = 30/365 (since there are 365 days in a year). Thus, Interest = $8,700 × 0.062 × (30/365) = $44.30.

A Student Loan Is Taken Out for $8,700 at 6