Pace Co. borrowed $12,000 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 Pace have to pay in a 30-day month? a. $89.18 b. $55.1 c. $72.50 d. $89.9 e. $75.4

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
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Can you please give me correct answer the general accounting question?

Pace Co. borrowed $12,000 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 Pace have to pay
in a 30-day month?
a. $89.18
b. $55.1
c. $72.50
d. $89.9
e. $75.4
Transcribed Image Text:Pace Co. borrowed $12,000 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 Pace have to pay in a 30-day month? a. $89.18 b. $55.1 c. $72.50 d. $89.9 e. $75.4
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