Option e
The interest Billy has to pay in a 30 day month is $ 906.25
<u>Solution:</u>
Given, Billy Thornton borrowed $150,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month.
The bank uses a 360-day year.
<em><u>The simple interest is given as:</u></em>
Where amount is principal amount,
rate is interest rate % per year
time is number of years
Here in our problem, amount = $150000
We need to calculate for 30 day month
Time = 30 days
Plugging the values in formula, we get,
Hence interest to be paid in a 30 day month is $ 906.25. Thus Option e is correct