Answer:
The correct answer is option c.
Explanation:
The formula of simple interest is given by ;
[tex]S.I=\frac{P\time R\times T}{100}[/tex]
P = principle amount'
R = Rate at which interest is given
T = time period
We have :
P = $20,000
R = 7.25%
T = 30 days
1 year = 360 days
[tex]30 days=\frac{30}{360} years[/tex]
So, the simple interest after 30 days will be :
[tex]S.I=\frac{\$20,000\times 7.25\times 30}{100\times 360}[/tex]
= $120.83
Billy have to pay $120.83 in a 30-day month.
