21
QuizMultiple Choice

Credit and Types of Loans — Test

Question 21 • Financial Math

Calculate the interest using I=(P⋅d⋅r)/(365) for a $⁢10,000 loan at an annual interest rate of 3% over 120 days without any payments.

Answer
A
200 point 0 0 dollars
B
150 point 0 0 dollars
C
120 point 0 0 dollars
D
98 point 6 3 dollars

Explanation

Substitute the loan amount, annual rate, and number of days into the formula: I = (10,000 × 0.03 × 120) ÷ 365. The numerator is 36,000, and 36,000 ÷ 365 ≈ $98.63. Therefore, the interest is $98.63, which is choice D.

AI-written and checked against the verified answer.

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