Pierre owns a restaurant. He has an overdraft line of credit. Each overdraft transaction costs $7.82, plus interest at 12%/yr. On Wednesday, Pierre had 4 overdraft transactions for $96.54. He paid back the money in 15 d. How much is the interest?
First, we need to calculate the total cost of the overdraft transactions.
Total cost = ($7.82 per transaction) x (4 transactions) = $31.28
Next, we need to calculate the total amount Pierre borrowed for the overdraft transactions.
Total borrowed amount = $31.28 + $96.54 = $127.82
Now, we need to calculate the interest Pierre will need to pay for borrowing $127.82 for 15 days at a rate of 12% per year.
Interest = (Principal x Rate x Time) / 365
Interest = ($127.82 x 0.12 x 15) / 365
Interest = ($18.34) / 365
Interest = $0.05030137 per day
Therefore, the total interest Pierre will have to pay for borrowing $127.82 for 15 days is:
Total interest = $0.05030137 x 15 = $0.75452
So, the interest Pierre will have to pay is $0.75.