Catherine borrowed $19,000 on June 20, at 10% interest. If the loan was due on September 17, what was the amount of interest on the loan using the exact interest method?

Answer 1

Exact interest is based on a 365-day year.

From June 30 to September 17, three months have passed. Both July and August have 31 days, while June has 30 days. So the duration of the loan is 30+31+31-3=89 days.

Interest
=Principal*(days/365)*0.10
=19000*(89/365)*0.10
=$463... dollars approximately
Use your calculator to get the exact amount.