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. $904.75
b. $907.75
c. $903.25
d. $909.25
e. $906.25

Option e

The interest Billy has to pay in a 30 day month is $ 906.25

Solution:

Given, 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.  

The simple interest is given as:

Where amount is principal amount,

rate is interest rate % per year

time is number of years  

Here in our problem, amount = $150000

We need to calculate for 30 day month

Time = 30 days

Plugging the values in formula, we get,

Hence interest to be paid in a 30 day month is $ 906.25. Thus Option e is correct

answer: i think it's a

step-by-step explanation: