Question

Miguel Sebring took out a loan for $5,000 at 9.5% exact interest for 90 days. How much interest will Miguel pay?

Answer 1

Answer: Miguel will pay Rs 11,875.

Explanation:

P = 5,000

R = 9.5%

T = 90 days

now changing time into years

360 days = 1 year

90 days = 1/360 * 90 = 1/4 years = 0.25 years

now

I = PTR/100

= (5,000*9.5*0.25)/100

= 11,875