question 7 (5 points) acme corporation lent $25,000 to hastings, inc. for 75 days at 7% interest on november…

question 7 (5 points) acme corporation lent $25,000 to hastings, inc. for 75 days at 7% interest on november 22, 2018. how much interest will have accrued to acme corporation on december 31, 2018, assuming a 360 - day year? a) $364.58 b) $175.00 c) $189.58 d) $204.52

question 7 (5 points) acme corporation lent $25,000 to hastings, inc. for 75 days at 7% interest on november 22, 2018. how much interest will have accrued to acme corporation on december 31, 2018, assuming a 360 - day year? a) $364.58 b) $175.00 c) $189.58 d) $204.52

Answer

Explanation:

Step1: Calculate number of days

Number of days from November 22 to December 31: November has 30 days, so from November 22 - November 30 is $30 - 22= 8$ days, and December 1 - December 31 is 31 days. Total days $d=8 + 31=39$ days.

Step2: Use simple - interest formula

The simple - interest formula is $I = P\times r\times\frac{d}{360}$, where $P = 25000$ (principal amount), $r=0.07$ (interest rate), and $d = 39$ (number of days). $I=25000\times0.07\times\frac{39}{360}$ $I = 25000\times0.07\times\frac{13}{120}$ $I=\frac{25000\times0.07\times13}{120}$ $I=\frac{22750}{120}\approx189.58$

Answer:

C) $189.58$