Question

If you had a loan for $30,000 at an annual interest rate of 8 percent with a 90-day interest prepayment penalty, what would be the amount of your penalty?
a. $200
b. $600

Answer 1

The formula is
I=prt
I amount of penalty ?
P loan 30000
R interest rate 0.08
T time 90/360
I=30,000×0.08×(90÷360)
I=600

Hope it helps!