FinancingInterest_and_payment_calculationsMEDIUM
A lender uses a 365-day simple interest method. On a mortgage balance of $182,500 at 4.8% annual interest, approximately how much interest accrues per day?
Correct Answer
B) $24.00
Step 1: Annual interest = $182,500 × 4.8% = $8,760. Step 2: Daily interest = $8,760 ÷ 365 = $24.00. Using the stated 365-day simple interest method, the daily accrual is $24.00.
Answer Options
A
$30.00B
$24.00C
$60.00D
$73.00Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
daily_interestsimple_interestper_dieminterest_accrual
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