Question

suppose you take out a loan for $5000, at 6% ordinary intetrest. If the amount of interest is $91.67, what is the time period. (Round to next higher day)

Answer 1

Ordinary interest rate is calculated based on 360 day year or 30 day month.

Assuming 6% is the annual interest rate. Then,

$5000 * 6% = 300 / 360 = 0.833 daily interest

$91.67 / 0.833 = 110.04 or 110 days.

The total interest amount of $91.67 is the total interest accumulated within 110 days.