Answer:
The amount of Original Interest is $47,368.421
Explanation:
The original amount of the loan is computed as by using the ordinary interest:
Ordinary Interest = Original Amount × 360 / Rate of Interest × Number of Days
where
Original Amount is $162.50
Rate of Interest is 6.5%
Number of Days is 19 (April, 12 2006 to April, 30 2006)
Putting the values in the above:
= $162.50 × 360 × 100 / 6.5 × 19
= $5,850,000 / 123.5
= $47,368.421
