Find the exact interest to the nearest cent.
-$8,500 at 7% for 125 days
A)$198.88
B)$201.64
C)$203.77
D)$206.60

Question

Quizplus · Accepted Answer

We can use the formula:

Interest = Principal x Rate x Time

where Rate is the annual interest rate, divided by 365 to get the daily rate.

Principal = $8,500
Rate = 7%/365 = 0.019178%
Time = 125 days

Plugging in the values, we get:

Interest = $8,500 x 0.019178% x 125
Interest = $203.76625

Rounding to the nearest cent, we get $203.77. Therefore, the answer is C. The formula for calculating simple interest is: 
Interest = Principal x Rate x Time
where Rate is the annual interest rate, Time is the time period in years, and Principal is the amount of money borrowed or invested.

In this problem, we need to find the interest earned on $8,500 at a rate of 7% for 125 days.

First, we need to convert the time period from days to years. There are 365 days in a year, so:

Time = 125/365 = 0.3425 years

Next, we can plug in the values into the formula:

Interest = $8,500 x 0.07 x 0.3425 = $203.77 (rounded to the nearest cent)

Therefore, the best choice is C, which is $203.77.

Find the Exact Interest to the Nearest Cent