Question

Find the simple interest owed for the loan $2770 at 4.86% for 35 months The interest charged on a principal of $2770 at an interest rate of 4.86% over 35 months is $ (Round to the nearest cent as needed.) Enter your answerine answer box

Answer 1

We would apply the formula for determining simple interest which is expressed as

I = (p * R * T)/100

Where

I represents the interest

P represents the principal or amount borrowed

T represents the duration which is expressed in terms of years

R represents interest rate.

From the information given,

P = 2770

R = 4.86

Recall, there are 12 months in a year. Thus, expressing 35 months in terms of years, we have

T = 35/12

Thus,

I = (2770 * 4.86 * 35)/(100 * 12)

I = 471177/1200

I = 392.6475

Rounding to the nearest cent,

I = $392.65

The interest is $392.65