Final answer:
To calculate the exact interest on a loan, you can use the formula: Interest = Principal × Rate × Time. Let's assume the loan amount is $X, the annual interest rate is Y%, and the loan duration is Z days.
Step-by-step explanation:
To calculate the exact interest on a loan, you can use the formula: Interest = Principal × Rate × Time. Let's assume the loan amount is $X, the annual interest rate is Y%, and the loan duration is Z days.
- Convert the annual interest rate to a decimal by dividing it by 100: Y/100.
- Calculate the exact interest using the formula mentioned above: Interest = X × (Y/100) × (Z/365). Remember to use 365 days as the denominator since it's the standard for a year in simple interest calculations.
By plugging in the given values, you'll be able to find the exact interest on the loan.