Answer :
Answer:
the interest cost is $4,679.45
Step-by-step explanation:
The computation of the interest cost is shown below:
= Loan amount × rate of interest × given no of days ÷ total no of days in a year
= $40,000 × 14% × 305 days ÷ 365 days
= $4,679.45
hence, the interest cost is $4,679.45