Question

Diane Van Os decided to buy a new car since her credit union was offering such low interest rates. She borrowed 30,000 at 4.75% on December 12 2016 and paid it off March 04 2018. How much did she pay in interest? (Assume exact interest)

Answer 1

Total Interest Diane has to pay is $1,745

Explanation:

Behind the Excel sheet

Total Number of Days:

It was the sum 2016 + 2017 + 3 months of 2018

19 + 365 + 31 + 28 + 4

Exact Intrest on Loan

the Borrowed Amount is multiplied by Exact Intrest Rate multiplied by Total Number of Days divided by Number of Days in a Year

$30,000 x 0.0475 x (447/365)