Cindy borrowed $750 from Clare on April 17 at an interest rate of 15%. On June 30 of the same year, Clare repaid the loan with interest. How much interest should she have paid?
A) $22.81
B) $21.63
C) $28.13
D) $112.50
E) $90.87

Question

Quizplus · Accepted Answer

The interest is calculated using the formula: Interest = Principal x Rate x Time. The time period from April 17 to June 30 is 74 days. Converting the annual rate to a daily rate: 15% per year is 0.15/365 per day. Thus, Interest = $750 x 0.15 x (74/365) = $22.81.

Cindy Borrowed $750 from Clare on April 17 at an Interest