Using the Exact Interest rule, compute the interest on the following note:
$9,000 for 45 days at 23.5%. (round to the nearest cent)
To compute the interest using the Exact Interest rule, you'll need to know the principal amount, the time period, and the interest rate. Here's how you can calculate the interest on a note:
Step 1: Determine the principal amount.
In this case, the principal amount is $9,000.
Step 2: Determine the time period.
The time period in this case is 45 days.
Step 3: Determine the interest rate.
The interest rate in this case is 23.5%.
Step 4: Convert the interest rate to decimal form.
To convert 23.5% to decimal form, divide it by 100: 23.5/100 = 0.235.
Step 5: Calculate the interest using the Exact Interest formula.
The Exact Interest formula is: Interest = (Principal * Time * Rate) / 365.
Plugging in the values:
Interest = (9,000 * 45 * 0.235) / 365.
Calculating the numerator:
Interest = 947.625 / 365.
Calculating the interest:
Interest = $2.60 (rounded to the nearest cent).
So, the interest on the note is approximately $2.60.