Question

The interest accrued on $6,000 at 7% for 90 days is: (Use 360 days a year.)

a,$105.

b.$210.

c.$49.

d.$42.

e,$490.

Answer 1

The simple interest accrued on a $6,000 investment at a 7% annual rate for 90 days is $105. This is calculated using the simple interest formula I = PRT, where I is the interest, P is the principal, R is the annual interest rate, and T is the time in years. Option A is correct.

Step-by-step explanation:

The question is asking to calculate the simple interest accrued on a $6,000 principal at a 7% annual rate over a period of 90 days, assuming a 360-day year. To compute the interest, we can use the formula for simple interest:

I = PRT

Where:

I is the interest

P is the principal amount ($6,000)

R is the annual interest rate (7% or 0.07 as a decimal)

T is the time in years (90/360)

Now, let's calculate the interest:

I = $6,000 * 0.07 * (90/360)

I = $6,000 * 0.07 * 0.25

I = $105

Therefore, the interest accrued on $6,000 at 7% for 90 days is $105, which corresponds to option a).