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The interest accrued on $6,500 at 6% for 60 days is:

a. $36
b. $42
c. $65
d. $180
e. $420

1 Answer

3 votes

Final answer:

To find the interest accrued on $6,500 at 6% for 60 days, one must use the simple interest formula: Interest = Principal × Rate × Time. The calculation should use a decimal rate and the time in a fraction of a year (days/365). None of the options are correct.

Step-by-step explanation:

The question asks to calculate the interest accrued on $6,500 at a 6% annual interest rate for 60 days. To solve this, we use the formula for simple interest, which is Interest = Principal × Rate × Time. In this case, the principal (P) is $6,500, the rate (R) is 6% (or 0.06 as a decimal), and the time (T) is 60/365 because interest rates are typically annual and there are 365 days in a year.

Using the formula:
Interest = $6,500 × 0.06 × (60/365)
This calculation yields the interest accrued over 60 days.

It's important to note that we're using a simple interest calculation and not compound interest, which takes into account the interest of previous interest periods. This question assumes a straightforward interest calculation without compounding. None of the options are correct.

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