To calculate the interest on capital using the bank and exact method, we will use the following formula:
Interest = Capital * Rate * Time
Where:
Capital = $10,000
Rate = 12% (or 0.12 as a decimal)
First, let's calculate the time period in years. The given period is from 15.3.2016 until 10/10/2016.
Using a calendar, we can see that this is a time period of approximately 209 days = 209/365 years (from March 15, 2016, to October 10, 2016).
Next, we can substitute the values into the formula:
Interest = $10,000 * 0.12 * 209/365
Calculating this expression, we get:
Interest = $687.12.