Question

You decide to pay off a 5000 loan with an interest rate of 8% early . The bank iafoms you that you can 82.19 in interest. Assuming the bank uses a 365 day year how many days will you be charged interest?

Answer 1

To calculate the number of days you will be charged interest, we can use the formula:
Interest = Principal x Rate x Time
Given that the interest is $82.19, the principal is $5000, and the interest rate is 8%, we can plug in these values and solve for time:
$82.19 = $5000 x 0.08 x (Time / 365)
82.19 = 400
Time = (82.19 / 400) * 365
Time = 75.43 days
Therefore, you will be charged interest for approximately 75 days.