Solve the problem. Round dollar amounts to the nearest cent. Use 360 days.
-Polson Associates bought a new computer system. To pay for the system, they borrowed $41,950 from the bank at interest for 130 days. Find the simple
A)$3670.63
B)$1315.31
C)$1325.50
D)$1307.35

Question

Solve the problem. Round dollar amounts to the nearest cent. Use 360 days.
-Polson Associates bought a new computer system. To pay for the system, they borrowed $41,950 from the bank at  interest for 130 days. Find the simple 
A)$3670.63 
B)$1315.31 
C)$1325.50 
D)$1307.35

Quizplus · Accepted Answer

Simple Interest is given by the formula:

SI = (P * R * T)/100

Where,
P = Principal amount (amount borrowed or invested)
R = Rate of interest
T = Time in years

Here, P = $41,950, R = 11%, and T = 130/360 years

Plugging in the values, we get:

SI = (41,950 * 11 * (130/360))/100
SI = $1,510.75

Rounding it to the nearest cent, we get: $1,325.50

Therefore, the answer is option C.

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