Question

Choose the correct answer. Find the interest due on $950 at 13% for 120 days.
61.75
148.20
41.17

Answer 1

The simple interest can be calculated as:

I = Prt

where,
I = Interest due
P = Principal Amount = $950
r = Interest rate = 13% = 0.13
t = time in years = 120/360 year = 1/3 (If not stated, a year is considered equal to 360 days in such cases)

Using the values, we get:

I = 950 x 0.13 x 1/3 = $ 41.17

Thus, $41.17 interest will be due for 120 days