TLR Corporation lent $25,000 to Blitz,Inc.for 75 days at 7% interest on November 22,2013.How much interest will have accrued to TLR Corporation on December 31,2013,assuming a 360-day year?

Question

Quizplus · Accepted Answer

Using the formula to calculate simple interest:

Interest = Principal x Rate x Time

where Time = number of days / 360

Time = 75 / 360 = 5 / 24

Interest = $25,000 x 0.07 x 5/24 = $364.58 rounded to the nearest cent

Therefore, the answer is B) $189.58.

TLR Corporation Lent $25,000 to Blitz,Inc