DETAILS MY NOTES BRECMBC9 10.I.016.MI. ez Engineering borrows \( \$ 5,500 \), at \( 8 \frac{1}{2} \% \) interest, for 120 days. If the bank uses the ordinary interest method, how much interest (in \( \$ \) ) will the bank collect? (Round your answer to the nearest cent.) Help? Read it Watch it Master il

To calculate the interest using the ordinary interest method, you can use the formula: \[ \text{Interest} = P \times r \times t \] where \( P \) is the principal amount (\$5,500), \( r \) is the interest rate (as a decimal), and \( t \) is the time in years. Since you're borrowing for 120 days, you'll convert that to years by dividing by 360 (ordinary interest method uses a 360-day year). First, convert the interest rate: \[ r = 8.5\% = 0.085 \] Then, convert the time: \[ t = \frac{120}{360} = \frac{1}{3} \] Now calculate the interest: \[ \text{Interest} = 5500 \times 0.085 \times \frac{1}{3} = 5500 \times 0.085 \times 0.3333 \approx 159.72 \] So, the bank will collect approximately \$159.72 in interest. Want to make your calculations even easier? Consider using a financial calculator or an online interest calculator! They can save you time and reduce the chance of mistakes, especially when you're dealing with different rates and time periods. Just input the values, and let the calculator do the work for you!