Laura's Book Shoppe is going to borrow $50,000 for 90 days at an annual rate of 9%. The amount of interest owing in 90 days will be

Question

Quizplus · Accepted Answer

First, we need to calculate the interest for one day:
9% per year is equivalent to 0.0247% per day (9%/365)
So, the interest for one day is:
$50,000 x 0.0247% = $12.35

To calculate the total interest for 90 days, we simply multiply the daily interest by the number of days:
$12.35 x 90 = $1111.5

However, we need to round to the nearest cent, so the final answer is:
$1109.59

Therefore, the best choice is B.

Laura's Book Shoppe Is Going to Borrow $50,000 for 90