Answer:
Chaze pays $174.375 in simple interest.
Explanation:
To calculate the simple interest Chaze pays, we need to use the formula:
Simple Interest = Principal × Rate × Time
Where:
Principal = $1500 (the amount borrowed)
Rate = 7 ¾ % per year (or 7.75% in decimal form)
Time = 1 ½ years (or 1.5 years)
Converting the rate to decimal form:
7.75% = 7.75/100 = 0.0775
Plugging in the values into the formula, we get:
Simple Interest = $1500 × 0.0775 × 1.5
Calculating this:
Simple Interest = $1500 × 0.0775 × 1.5 = $174.375