posted by .

Janet Home went to Citizens Bank. She borrowed \$7,000 at a rate of 8 percent. The date of the loan was Sept 20. Janet hoped to repay the loan on Jan.20. Assuming the loan is based on ordinary interest, Janet will pay back interest on Jan.20 is?

I = PRT

I = 7,000 * 0.08 * 0.333

A. \$188.22
B. \$187.18
C. \$187.17

D. \$189.78

Ms.sue so which one is the answer I don't get it

The formula for this is I = PRT
I = Interest
P = Principal (starting amount) = \$7,000
R = Rate (percentage) = 8% = .08
T = Time in years = days/years = 122/365

I = 7000(.08)(122/365)
I = \$187.178
I = \$187.18 (rounded)

B. \$187.18

Ps: When the time is less than a year you have to convert it like I did above.

## Similar Questions

1. ### Intrest

On Sept 14 Jennifer Rick went to park bank to borrow 2500.00 at 11 3/4 intrest. Jennifer plans to repay the loan on Janauary 27th Assume the loan is on ordinary intrest. What intrest will Jennifer owe on January 27th What is the total …
2. ### math

Janet took out a loan of \$50,000 from Bank of America at 8 percent on March 19, 2006 which is due on July 8, 2006. Using exact interest, the amount of Janet's interest cost is
3. ### math

Janet took out a loan of \$50,000 from Bank of America at 8 percent on March 19, 2006 which is due on July 8, 2006. Using exact interest, the amount of Janet's interest cost is
4. ### math

Janet Home went to Citizen Bank. She borrowed \$7,000 at a rate of 8 percent. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back interest …
5. ### math

Janet Home went to Citizen Bank. She borrowed \$7,000 at a rate of 8 percent. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back interest …

Joan Roe Borrowed \$85,000 at a rate of 113/4 percent. The date of the loan was July 8. Joan is to repay the loan on Sept 14. Assuming the loan is based on exact interest, the interest Joan will pay on Sept 14 is?
7. ### home economics

Janet Home went to Citizen Bank. She borrowed \$7,000 at a rate of 8 percent. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back interest …