On May 1, Gladis borrowed $10,000 on a line of credit with an annual rate of 7.75%. On August 15, Gladis repaid half of the loan. From August 15 to December 31, the interest rate decreased to an annual rate of 7.50%. Determine the total simple interest charged from May 1 to December 31, when Gladis repaid all obligations.
A) $358.67
B) $366.85
C) $371.91
D) $383.42
E) $397.86

Question

Quizplus · Accepted Answer

The Answer of On May 1, Gladis borrowed $10,000 on a line of credit with an annual rate of 7.75%. On August 15, Gladis repaid half of the loan. From August 15 to December 31, the interest rate decreased to an annual rate of 7.50%. Determine the total simple interest charged from May 1 to December 31, when Gladis repaid all obligations.
A) $358.67
B) $366.85
C) $371.91
D) $383.42
E) $397.86

On May 1, Gladis Borrowed $10,000 on a Line of Credit