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 on January 20
186.67
To calculate the interest on a loan based on ordinary interest, we need to consider the principal amount, the interest rate, and the time period.
In this case, Janet borrowed $7,000 at a rate of 8 percent. The time period is from September 20 to January 20, which is four months.
To calculate the interest, we can use the formula:
Interest = Principal x Rate x Time
Plugging in the given values:
Interest = $7,000 x 0.08 x 4
Now, we can calculate the interest:
Interest = $7,000 x 0.32
Interest = $2,240
Therefore, Janet will have to pay back $2,240 in interest on January 20.