What is the interest on $50,000.00 at 5% for 40 days? Thanks

 


Usually interest rates refer to an annual rate and 5% of $50,000 is

0.05 $50,000 = $2,500

There are 365 days in a year so 40 days is 40/365 of a year. Hence the interest on $50,000 at an annual rate of 5% for 40 days is

$2,500  40/365 = $273.97 

Penny