Answer:
The interest is $189.78
Explanation:
The computation of the interest on January 20 is shown below:
= Principal Ă— interest rate Ă— number of days Ă· total number of days in a year
= $7,000 Ă— 8% Ă— 122 days Ă· 360 days
= $7,000 Ă— 8% Ă— 0.338
= $189.78
The 122 days are calculated below:
September - 10 days
October - 31 days
November - 30 days
December - 31 days
January  - 20 days
Total   - 122 days
And we assume the 360 days in a year
