How much interest would be earned (on a simple interest basis) from a three-day money market loan for $1 million at an interest rate of 12 percent (annual rate)?


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Oddman answered
If you count 365 days in the year, the interest on the first loan is
  $1,000,000*0.12*3/365 ≈ $986.30
The interest on the fourth day would be
  $1,000,000*0.11/365 ≈ $301.37
So the total due on the fourth day is
  $986.30 + 301.37 = $1287.67

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