Question

Find the simple interest.

Answer 1

We need to compute the exact number of days of the loan.

Given:
Loan: 1,870
rate: 11%
term: Oct. 5 to Jan 16.

Oct 5-Oct 31: 26 days
Nov: 30 days
Dec: 31 days
Jan 16: 16 days.
total number of days: 103 days.

Interest = Principal * rate * term
Interest = 1870 * 0.11 * 103/365
Interest = 58.05

Given:
Promissory note $5,380
rate 6.2%
term: July 15 to Dec. 28

July 15 - 31 = 16 days
August: 31 days
September: 30 days
October: 31 days:
November: 30 days
December: 28 days
Total number of days is 166 days

Interest = Principal * rate * term
Interest = 5,380 * 0.062 * 166/365
Interest = 151.70