Final answer:
To determine the interest paid in the cheque of $3025.69 for settling a loan, the original loan balance is required. Using a hypothetical example with a $3000 principal, we applied the simple interest formula (I = PRT) to find that the interest is $69.375 for 3 months at 9.25% annual interest rate. Exact figures are necessary for a precise calculation.
Step-by-step explanation:
To calculate how much of the payment is interest, we need to know the principal amount of the loan that the lawyer's cheque of $3025.69 is settling. Without having the principal amount or the original balance before the interest was added, we cannot determine the exact interest paid from the information given. To proceed, we would subtract the original loan balance from the final payment amount. If we assume that the principal was the remaining balance and there were no other fees or compounded interest, we could apply the formula for simple interest: I = PRT (where I is interest, P is principal, R is the annual interest rate, and T is time in years).
For example, to answer your original question using a hypothetical loan principal (for which we would need exact figures), let's say the principal balance was $3000. The interest for a period of 3 months (or 0.25 years) at 9.25% (or 0.0925 in decimal form) would be calculated as follows:
Interest (I) = Principal (P) × Rate (R) × Time (T)
Interest (I) = $3000 × 0.0925 × 0.25
Interest (I) = $69.375
This would mean that out of the $3025.69 cheque, $69.375 represents the interest. However, this is just an example, and for your specific case, we would need the exact principal before interest was added.