Janet took out a loan of $50,000 from Bank of America at 8% on March 19, 2015, which is due on July 8, 2015. Using exact interest, the amount of Janet's interest cost is:
The formula for this is I = PRT I = Interest P = Principal (starting amount) = $50,000 R = Rate (percentage) = 8% = .08 T = Time in years = days/years = 111/365
I = 50000(.08)(111/365) I = $1216.438 I = $1216.44 (rounded)
