What is the Total Interest Cost

User Generated

wbfr chwbyf

Business Finance

Question Description

What is the total interest cost if...

Principle is $10,000

Rate is 8%

Time is 240 days in a 360 day year

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Explanation & Answer

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SI = (P*R*T)/100

Rate = 8%

Time = 240/360 = 2/3 year

SI = 10,000 x 8/100 x 2/3

= $ 533.30

Is the rate monthly or yearly?


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Znljrngure (69)
UT Austin

Anonymous
Awesome! Perfect study aid.

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