Question

Hernandez Engineering borrows $6,500, at 6 1/2 interest, for 150 days. If the bank uses the ordinary interest method, how much interest (in $) will the bank collect

Answer 1

To calculate the interest using the ordinary interest method, multiply the principle, rate, and time together. The interest in this case is $168.49.

Step-by-step explanation:

To calculate the interest using the ordinary interest method, we first need to calculate the simple interest. The formula for simple interest is:

Interest = Principle * Rate * Time

In this case, the principle is $6,500, the rate is 6.5% (or 0.065), and the time is 150 days (or 150/365 years).

Substituting these values into the formula, we get:

Interest = $6,500 * 0.065 * (150/365)

Calculating this expression gives us a total interest of $168.49.