Question

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest

Answer 1

interest=(P*T*R)/100
= (40000*0.33*4)/100
= $528

Answer 2

$1,600

Step-by-step explanation:

Since the borrower is to pay 4% of the money by October 11(Due time)

4% of the principal is simply

(4/100)* 40,000 = $1,600