Colin needs to borrow $1,500 for car repairs. How much interest will he pay if the rate is 4.9% and he has 125 days to repay the loan? (Be sure to round the time to the nearest hundredth. Example: 250 days divided by 365 days is .68, not .684.)

Question

anonymous · Answer

Is the interest calculated everyday then?

anonymous · Answer

4.9% / 365 = ?? to get the daily rate.

1500 * (1 + ??)^125  - 1500 = the amount of interest, calculated everyday.