Janet Home went to Citizen Bank. she borrowed $7000 at a rate of 8%. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?

Question

Janet Home went to Citizen Bank.  she borrowed $7000 at a rate of 8%.  The date of the loan was September 20.  Janet hoped to repay the loan on January 20.  Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?

Feven · Accepted Answer

7000 * 0.08* 122/360 189.7777 189.78

Ms. Sue · Answer

I = PRT I = 7,000 * 0.08 * 0.33333 I = $186.67