Mel took out a loan of $40,000 at 14 percent on March 16, 2007 which is due on January 15, 2008. Using exact interest, the amount of Mel's interest cost is:

1 answer

I = 40,000 * 0.14 * 0.8384
I = ?

March = 15 days
April = 30
May = 31
June = 30
July = 31
August = 31
September = 30
October = 31
November = 30
December = 31
January = 15

Total days = 306 days. Check my addition.

306/365 = 0.8384