Answer to Question #251518 in Financial Math for Hahkeem

Question

Nolan Walker decided to buy a used snowmobile since his credit union was offering such low interest rates. He borrowed $51,00 at 4.25% on December 26, 2019, and paid if off February 21, 2021. How much did he pay in interest? Using ordinary interest and no leap year

Answer 1

Total number of days during loan period $=$ (6 days in 2019) $+$ (365 days in 2020) $+$ (31 days $+$ 21 days in 2021)

$=$ 422 days

Ordinary interest$=$ $5100$×$ $\frac{4.25}{100}$ $×$ $\frac{422}{365}$ $=$ $ 250.60