Question

North Central Sales bought a new computer system. To pay for the system, they borrowed $35,133 from the bank at 6.0% interest for 152 days. Find the interest amount paid.

a) $752.71
b) $837.26
c) $924.14
d) $1,069.15

Answer 1

To find the interest amount paid, use the formula: Interest = Principal x Rate x Time. Plugging in the values gives an interest of approximately $837.26.

Step-by-step explanation:

To find the interest amount paid, we can use the formula:

Interest = Principal x Rate x Time

Where,
Principal = $35,133
Rate = 6.0% = 0.06 as a decimal
Time = 152 days = 152/365 years (approximating to 0.417 years)

Plugging in the values:

Interest = $35,133 x 0.06 x 0.417

Interest ≈ $837.26