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
$365.63
$36.56
$36.06
$360.62
To calculate the interest owed, we can use the formula:
Interest = Principal * Interest Rate * Time
Principal = $7,500
Interest Rate = 13% = 0.13
Time = 135 days
Using this information, we can calculate the interest owed as:
Interest = $7,500 * 0.13 * (135/365)
Interest = $3,650.62/365
Interest = $36.06
Therefore, the interest owed is $36.06.
The correct answer is: $36.06