Find the ordinary interest on a loan of $350 at 12% annually made on July 9 and

Business & Finance
Tutor: None Selected Time limit: 1 Day

Find the ordinary interest on a loan of $350 at 12% annually made on July 9 and due October 31. 

A) $42.00 

B) $13.30 

C) $363.30 

D) $13.18

Apr 26th, 2015

It is not C because this is the interest plus the principal; it is not A because this is not a full year. 

It is b. There are 114 days from July 9 to October 31st. This 114 divided by the 360 days per year often used in finance, times the rate of 12%, times the principal gives total simple interest of $13.30.

Apr 26th, 2015

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