Question

nolan walker decided to buy a used snowmobile since his credit union was offering such low interest rates. he borrowed $4,100 at 4.25% on december 26, 2021, and paid it off february 21, 2023. how much did he pay in interest? (assume ordinary interest and no leap year.) (use days in a year table.)

Answer 1

Nolan Walker paid approximately $201.35 in interest on the snowmobile loan by borrowing $4,100 at a 4.25% interest rate and paying it off over a span of 422 days.

Step-by-step explanation:

Nolan Walker borrowed $4,100 at a 4.25% annual interest rate on December 26, 2021, and paid it off on February 21, 2023.

To calculate the interest paid, we need to use the formula for ordinary interest:

Interest = Principal × Rate × Time.

First, we'll calculate the time in years which is the number of days between the dates divided by 365.

From December 26, 2021, to February 21, 2023, is (5 days in 2021) + (365 days in 2022) + (52 days in 2023) = 422 days. Now we convert this to years: 422 days / 365 = 1.156 years.

Using the formula: Interest = $4,100 × 4.25% × 1.156, we obtain

Interest = $4,100 × 0.0425 × 1.156 = $201.35 approximately.

Therefore, Nolan paid approximately $201.35 in interest for the snowmobile loan.