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Calculate the simple interest for a $25,000 loan at 5% after nine months.

User Awa
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Final answer:

The simple interest for a $25,000 loan at 5% after nine months is $937.50.

Step-by-step explanation:

To calculate the simple interest for a $25,000 loan at 5% after nine months, you can use the formula:

Simple Interest = principal × rate × time

Plug in the values:

Principal (P) = $25,000, Rate (R) = 0.05, Time (T) = 9/12 (converted to years)

Simple Interest = $25,000 × 0.05 × (9/12)

Simplify the calculation:

Simple Interest = $25,000 × 0.05 × 0.75

Simple Interest = $937.50

The simple interest for the $25,000 loan at 5% after nine months is $937.50.

User YuviDroid
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