Question

A $40,000 loan at 4 percent dated June 10 is due to be paid on October 11. The amount of interest is: (Assume ordinary interest)

Answer 1

Have you considered I = Prt?

P = 40000
r = 4% = 0.04
t = 123/365

Go!

Answer 2

if by ordinary interest you mean simple interest and the 4% is an annual rate then the amount of interest is about 533.33