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26 February, 08:13

Jacobs Company borrowed $100,000 at 8 percent interest for three months.

How much interest does the company owe at the end of three months?

A. $8,000

B. $2,000

C. $800

D. $200

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Answers (1)
  1. 26 February, 08:30
    0
    B. $2,000

    Explanation:

    The principal amount is $100,000

    Interest rate is 8% usually per year (12 months)

    Loan duration, three months:

    Annual interest = $100,000.00 x 8%

    =$100,000.00x 0.08

    =$ 8000.00

    Interest for 3 months

    =3/12x$8000.00

    =0.25x$8000.00

    =$2000
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