Question

calculate the interest using $i = \frac{pdr}{365}$ for a $10, 000 loan at an annual interest rate of 3% over 120 days without any payments. $120.00 $200.00 $150.00 $98.63

Explanation:

Step1: Identify values

Principal \( P = \$10,000 \), rate \( r = 3\% = 0.03 \), days \( d = 120 \), year days \( 365 \).

Step2: Apply formula \( I=\frac{Pdr}{365} \)

Substitute values: \( I=\frac{10000\times120\times0.03}{365} \)
Calculate numerator: \( 10000\times120\times0.03 = 36000 \)
Divide by 365: \( I=\frac{36000}{365}\approx98.63 \)

Answer:

\$98.63