Jim Hindson’s bank granted him a single-payment loan of $3,400 for 144 days at an annual interest rate of 18%. His bank charges ordinary interest. What is the interest owed?
First, we need to determine the daily interest rate.
The annual interest rate is 18%, so the daily interest rate would be 18% divided by 365 (number of days in a year), which is 0.0493 or 4.93%.
Next, we calculate the interest owed by multiplying the loan amount by the daily interest rate and the number of days.
Interest owed = $3,400 * 0.0493 * 144
= $24,286.08
Therefore, Jim Hindson owes $24,286.08 in interest.