Find the amount of interest (in \( \$ \) ) on a loan of \( \$ 6,000 \), at \( 5 \% \) interest, for 60 days using the exact interest method. (Round your answer to the nearest cent.) \( \$ \) Need Help? Read it Watch it Master lt SUBMIT ANSWER

To calculate the interest on a loan using the exact interest method, you can use the formula: \[ I = P \times r \times t \] where: - \( I \) is the interest, - \( P \) is the principal amount (in this case, \( \$ 6,000 \)), - \( r \) is the annual interest rate (as a decimal, so \( 5\% = 0.05 \)), - \( t \) is the time in years (60 days is \( \frac{60}{365} \)). Plugging in the values: \[ I = 6000 \times 0.05 \times \frac{60}{365} \] Calculating this: \[ I = 6000 \times 0.05 \times 0.164384 \approx 49.315 \] Rounding to the nearest cent, the interest amounts to \( \$ 49.32 \). --- Did you know that the use of the exact interest method allows for more accurate calculations over shorter periods? This method accounts for the actual number of days in the year (365 days) rather than using a simplified method such as a 360-day year! For anyone looking to dive deeper into the world of interest calculations, consider checking out "The Mathematics of Money" by financial educator Charles H. Carver. It offers great insights into practical applications, including the various methods of calculating interest effectively!