Compute the accrued interest (using banker's interest) on the merchandise orders in Exam figure A.What is the July interest for the order dated 7/10? The question ask, What is the July interest for the order dated 7/10. I am asked to compute the answer using the simple interest formula: I = P x R x T.

Tne purchase price is $15, 632.16, interest rate is 10%, and the time is 10 months.

When I put in the numbers into the simple interest formula,

I get Interest = $15, 632.16 X 10% x (10/12) = $1,302.68. To get one month of interest, I change the time to (1/12) to get $130.27 or divide my answer, $1,302.68 by 10 which also gives me the same answer, $139.27. However, the answer choices I have for the multiple choice problem are:

A. $86.85

B. $88.25

C. $89.93

D. $91.92

Please explain how to calculate the answer. The examples on the printout explains it the way I solved it. But the answer I am getting doesn't match any of the answers above. Thank you.