John Davis has a single payment loan for $7,500. The interest rate is 13% for 135 days, exact interest. What is the interest owed?
Group of answer choices
$360.62
$365.63
$36.56
To calculate the interest owed, we use the formula:
Interest = Principal * Rate * Time
Given:
Principal = $7,500
Rate = 13% = 0.13
Time = 135 days
Plugging in the values, we have:
Interest = $7,500 * 0.13 * (135/365)
Interest = $7,500 * 0.13 * 0.3699
Interest = $360.625
Therefore, the interest owed is $360.62 (rounded to the nearest cent).
So, the correct answer is $360.62.