Question

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

A. $2,500.00
B. $503.00
C. $105.33
D. $546.67

Answer 1

Hi there:-)
From June 10 to October 11
20+31+31+30+11=123 days
Since the interest is ordinary 360 days in a year
The simple interest formula is
I=prt
I=40,000×0.04×(123÷360)
I=546.67...answer

Hope it helps

Answer 2

d) $546.67

Hope this helped!