Final answer:
Jorge's exact interest cost for a $50,000 loan at 8% from March 19, 2019, to July 8, 2020, accounting for the leap year, is $5,236.04.
Step-by-step explanation:
Jorge took out a loan of $50,000 from Bank of America at a simple interest rate of 8% on March 19, 2019, and it is due on July 8, 2020. To calculate the exact interest for the period that the money is borrowed, we need to consider the number of days the loan is outstanding.
Since 2020 was a leap year, the number of days from March 19, 2019, to July 8, 2020, is 477 days. The formula for calculating simple interest is principal * rate * time, and in this case, time will be the number of days divided by the number of days in a year.
To calculate the interest cost we use the following steps:
1. Calculate the number of days between the two dates: 477 days
2. Convert the annual interest rate to a daily rate by dividing by 365 (366 for leap years): 8% / 365 = 0.02191781% per day
3. Calculate the interest: $50,000 * 0.02191781% * 477 days = $50,000 * 0.0002191781 * 477 = $5,236.04157
The exact interest cost for Jorge is $5,236.04.