Cost of Bank Loan On March 1, Minnerly Motors obtains business loan from a local bank. The

Question:

Cost of Bank Loan On March 1, Minnerly Motors obtains business loan from a local bank. The loan is a $25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerly’s interest charge for the first month (assuming 31 days in the month)?