Question

Find the exact interest and the ordinary interest for a 260-day loan of $19,600 at 12% to the nearest cent. Then find the difference between the two interest amounts. $150.69 $1,698.67 $1,675.40 $23.27

Answer 1

The exact interest is when you divide the number of days given by 365

The ordinary interest is when you divide the number of days by 360

The formula is
I=prt

To find The difference

19,600×0.12×(260÷360)
−19,600×0.12×(260÷365)
=23.27

Hope it helps