Question

Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent, if necessary. A loan of $9500 at 7.4% made on July 25 and due on November 30 Group of answer choices

Answer 1

$246.53

Step-by-step explanation:

First, calculate the number of days the loan remains outstanding

Loan term = November 30 - July 25 = 128 days

Now use the following formula to calculate the interest

Interest = Loan amount x Interest rate x Loan term / 365

Where

Loan amount = $9,500

Interest rate = 7.4%

Loan term = 128 days

Placing values in the formula

Interest = $9,500 x 7.4% x 128/365

Interest = $703 x 128/365

Interest = $246.5315068

Interest = $246.53