Billy Thornton borrowed $150,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year.How much interest would Billy have to pay in a 30-day month?Select the correct answer.a. $904.75b. $907.75c. $903.25d. $909.25e. $906.25
Accepted Solution
A:
e: $906.25 $150,000 * 0.725= 108750 (to find the total amount billy has to pay over the year) 108750/12= 9062.5