Question

On January 1, 20X1, EmmyComic, Inc, borrows 13 millon dollars with an annual interest rate of 3.65%. How much interest does EmmyComic owe on January 2, 20X1? Please enter your answer as a whole number without a dollar sign (e.g. 100). Round to the nearest dollar if necessary.

Answer 1

EmmyComic, Inc, owes $1,300 in interest on January 2, 20X1, after borrowing 13 million dollars at an annual interest rate of 3.65%.

Step-by-step explanation:

To determine the interest that EmmyComic, Inc, would owe a day after borrowing 13 million dollars, we need to calculate the simple daily interest. The daily interest rate is calculated by dividing the annual interest rate by the number of days in the year (assuming a non-leap year, which is 365 days).

The daily interest rate is therefore 3.65% / 365 = 0.01%. The interest owed on January 2, 20X1, for one day of borrowing 13 million dollars would be calculated as follows: ($13,000,000 * 0.01%) = $1,300.

Since we need to provide a whole number, we can see that the amount does not need to be rounded as it is already a whole dollar amount.