Answer:
it depends (see below)
Step-by-step explanation:
Exact Interest
Exact interest is calculated on the basis of a 365-day year, so the exact interest on the loan would be ...
I = Prt = $7500·0.10·(85/365) = $174.66
Then the proceeds would be ...
$7500 -174.66 = $7,325.34 . . . . . matches first option
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Ordinary Interest
Exact interest is calculated on the basis of a 360-day year, so the ordinary interest on the loan would be ...
I = Prt = $7500·0.10·(85/360) = $177.08
Then the proceeds would be ...
$7500 - 177.08 = $7,322.92 . . . . . matches last option
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I suggest you check your reference materials (text or course examples) to see what year length is expected to be used in this calculation. Some on-line references show it one way; others show it the other way.
