Answer:
accrued interest 175
Explanation:
[tex]rate \times \frac{days}{360} [/tex]
[tex]0.10 \times \frac{90}{360} = .025[/tex]
[tex]principal \times equivalent \: rate[/tex]
[tex]7000 \times .025 = 175[/tex]
First, we need to convert the annual rate to a 90days equivalent rate.
Then, we apply the equivalent rate to the principal.
If it is not expressed otherwise, use a 360 days year
Accuerd Interest
175
