Problema Solution

On May 23, Samantha Best borrowed $40,000 from the Tri City Credit Union at 13% for 160 days. The credit union uses the exact interest method. What was the amount of interest on the loan? (round to the nearest hundredth)

Answer provided by our tutors

P = $40,000

r = 13/100 = 0.13

t = 160/365 years

I = the interest


I = P*r*t


I = 40000*0.13*160/365


I = $2,279.45