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3 March, 11:24

Janet took out a loan of $50,000 from Bank of America at 8% on March 19, 2015, which is due on July 8, 2015. Using exact interest, the amount of Janet's interest cost is:

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  1. 3 March, 11:35
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    The formula for this is I = PRT

    I = Interest

    P = Principal (starting amount) = $50,000

    R = Rate (percentage) = 8% =.08

    T = Time in years = days/years = 111/365

    I = 50000 (.08) (111/365)

    I = $1216.438

    I = $1216.44 (rounded)
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