Using the simplified daily interest formula I=(P⋅d⋅r)/(365) , determine the interest accrued on a $12,000 loan at an annual interest rate of 6% for 45 days without payments.
Answer
A
118 point 3 6 dollars
B
150 point 0 0 dollars
C
88 point 7 7 dollars
D
177 point 2 6 dollars
Explanation
Substitute the values into the daily interest formula: I = (12,000 × 45 × 0.06) ÷ 365. This gives 32,400 ÷ 365 ≈ $88.77, so the interest accrued is $88.77, choice C.
AI-written and checked against the verified answer.