Question

The simple interest on the loan. (Round your answer to the nearest cent.)

$875 at 6.85% for 5 years 6 months.

the total amount due for the simple interest loan. (Round your answer to the nearest cent.)

$6400 at 5.3% for 4 years 9 months.

the interest rate on a loan charging $960 simple interest on a principal of $3750 after 8 years.

the term of a loan of $350 at 4.5% if the simple interest is $63.

Answer 1

1) $329.66

2) $8011.20

3) 3.2%

4) 4

Explanation:

Simple interest formula: I = P*r*t

the simple interest on the loan: $875 at 6.85% for 5 years 6 months

5 years 6 months = 5,5 years

6.85% = 0.0685

I = 875*0.0685*5.5 = 329.66

the total amount due for the simple interest loan: $6400 at 5.3% for 4 years 9 months.

4 years 9 months = 4 + 9/12 = 4 + 0.75 = 4.75

5.3% = 0.053

I = 6400*0.053*4.75 = 1611.20

Total amount due: 6400+1611.20 = 8011.20

the interest rate on a loan charging $960 simple interest on a principal of $3750 after 8 years.

I = 960

P = 3750

t = 8

960 = 3750*r*8

960 = 30000*r

r = 0.032

r = 3.2%

the term of a loan of $350 at 4.5% if the simple interest is $63.

P = 350

r = 4.5% = 0.045

I = 63

t = ?

63 = 350*0.045*t

63 = 15.75*t

t = 4