Question

The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.)

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Initial investment (PV)= $7,500

Interest rate= 0.06/360= 0.00017 daily

Number of periods= 90 days

To calculate the interest earned, we need to use the following formula:

I= [PV*(1+i)^n] - PV

I= [7,500*(1.00017^90)] - 7,500

I= $115.62

Answer 2

Answer:

$112.50

Explanation:

Amount X Rate X Time =

(Principal of the note x Annual Interest Rate x Time expressed in fraction of year (360 days using the "banker's rule") = Interest)

$7,500 x 0.06 = 450

450 x 90 / 360 = $112.50