Bankrupt & Baroque,Inc.borrowed $10,000 on January 1 from E-Z Bank for three months at a 6% annual interest rate.The amount of interest due as of January 31 equals $200.

Name: Bankrupt & Baroque,Inc.borrowed $10,000 on January 1 from E-Z Bank for three months at a 6% annual interest rate.The amount of interest due as of January 31 equals $200.
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Question

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The interest for one month on a $10,000 loan at a 6% annual interest rate is $50. (Interest = Principal x Rate x Time = $10,000 x 0.06 x (1/12) = $50).