Problema Solution
slingerland borrowed $8,000 on July 20, at 11% interest. If the loan was due on October 17, what was the amount of interest on the loan using the exact interest method?
Answer provided by our tutors
Interest found using a 365-day year is called exact interest
P = $8,000
r = 0.11 or 11% interest
t = 90 days (there are 90 days between July 20 and October 17)
I = P*r*t
I = 8000*0.11*(90/365)
I = $216.99
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the amount of interest on the loan is $216.99.