To calculate the interest expense for half a month on a loan, we need to determine the daily interest rate first. Assuming a year consists of 365 days, we can calculate the daily interest rate by dividing the annual interest rate by 365:
Daily interest rate = (Annual interest rate) / 365
For your loan at 8.25% annually, the daily interest rate would be:
Daily interest rate = 8.25% / 365
Next, we calculate the interest expense for half a month (15 days) by multiplying the loan amount by the daily interest rate and the number of days:
Interest expense for 1/2 month = (Loan amount) * (Daily interest rate) * (Number of days)
Plugging in the values:
Interest expense for 1/2 month = $90,900 * (8.25% / 365) * 15
Calculating this, the interest expense for half a month on your loan would be approximately the result of that calculation.