5. Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8%. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?
A. $189.78 B. $187.18 C. $.188.22

Question

5. Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8%. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?
A. $189.78 B. $187.18 C. $.188.22

aaliyahfairgood · Answer

Interest = principle X rate X time in years 

Interest = 7000 X .08 x .333 year 

Interest = $186.48 

186.48 + 7000 = $7186.48 will be due Jan.20