lSprint LTE * 87% 5:21 PM sjc.cengagenow.com 22-01 Question 1 of 2 Check My Work

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lSprint LTE * 87% 5:21 PM sjc.cengagenow.com 22-01 Question 1 of 2 Check My Work (2 remaining) 22-9: The Cost of Bank Loans Problem 22-1 Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a $35,000 interest-only loan with a nominal rate of 18%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerly's interest charge for the first month (assuming 31 days in the month)? Round your answer to the nearest cent. Do not round intermediate calculations Check My Work (2 remaining)

Explanation / Answer

CALCULATION OF THE INTEREST AMOUNT Loan Amount = $     35,000.00 Interest Amount @ 18% Per Annum= $       6,300.00 Interest for 31 Days in the month of march = $           535.07 ($ 6,300 X 31 / 365) Answer = Interest Amount = $ 535.07

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