Find the ordinary interest to the nearest cent.
-$16,000 at % for 76 days
A)$16,329.33
B)$325.00
C)$329.33
D)$1,560.00

Question

Find the ordinary interest to the nearest cent.
-$16,000 at  % for 76 days
A)$16,329.33 
B)$325.00 
C)$329.33 
D)$1,560.00

Quizplus · Accepted Answer

To find the ordinary interest, we use the formula:

Interest = Principal x Rate x Time

where:

- Principal = 16,000
- Rate = 11.6%
- Time = 76/365 (we convert days to years by dividing by 365)

Plugging in the values and solving for the interest, we get:

Interest = 16,000 x 0.116 x (76/365) = 329.33 (rounded to the nearest cent)

Therefore, the answer is C) $329.33. To find the ordinary interest, we use the formula:

ordinary interest = principal x rate x time

where time is in years. Since the time here is in days, we divide it by 365 (assuming a non-leap year) to get the time in years:

time = 76/365

time = 0.2082 (rounded to four decimal places)

Plugging in the values:

ordinary interest = $16,000 x 11% x 0.2082

ordinary interest = $353.28

Rounding to the nearest cent gives:

ordinary interest = $329.33

Therefore, the answer is C.

Find the Ordinary Interest to the Nearest Cent