Question

Find the interest on the following loan. Assume 365 days in a year.

$34,100 at 7.25% for 107 days
The simple interest on $34,100 at 7.25% for 107 days is $1020
(Round to the nearest cent as needed.)

Answer 1

$724.74

Explanation:

You want the interest on a $34,100 loan at 7.25% for 107 days.

Interest

The simple interest formula is ...

I = Prt

where P is the principal amount of the loan at rate r for t years.

Here, the duration of the loan is 107 days out of 365, so 107/365 years.

I = $34100 × 0.075 × 107/365 ≈ $724.74

The interest on the loan is $724.74.

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