# Answer to Question #52655 in Accounting for nadine

Question #52655

using a 365-day calendar year, what is the interest due at closing for $54,750 mortgage loan at 8% interest for 23 days?

Expert's answer

If we use a 365-day calendar year, the interest due at closing for $54,750 mortgage loan at 8% interest for 23 days will be:

Interest payment IP = PV*i*t/365, where PV - present value of a loan, i - interest rate, t - number of days.

IP = 54,750*0.08*24/365 = $288

Interest payment IP = PV*i*t/365, where PV - present value of a loan, i - interest rate, t - number of days.

IP = 54,750*0.08*24/365 = $288

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