Calculate the amount of interest for each of the following independent situations (assume
365 days per year):
a)  $400,000 is borrowed at 6% interest for 1 year.
b)  $50,000 is borrowed at an annual interest rate of 4% for 60 days.
c)  $120,000 is borrowed at an annual interest rate of 7% for 275 days.
Answer:
		Amount in $
	Interest = Principal amount * Rate of interest*Time
a)	Interest amount	=400,000*6%*1
		24,000
b)	Interest amount	=50,000*4%*60/365
		328.77
c)	Interest amount	=120,000*7%*275/365
		6,328.77

Posted Date: 7/12/2012 3:06:02 AM | Location : United States

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