Question

Find the simple interest on a loan of $21,000 at 5.2% interest for 9 months

Answer 1

The simple interest on a loan of $21,000 at 5.2% interest for 9 months is $8.19.

Explanation:

To find the simple interest on a loan, you can use the formula:

`\text{Simple Interest} = \frac{{\text{Principal} * \text{Rate} * \text{Time}}}{{100}}`

where:

~The principal is the initial amount of the loan (in dollars).

~Rate is the interest rate per annum (in percentage).

~Time is the time duration for which the loan is taken (in years).

Given:

Principal (P) = $21,000

Rate (r) = 5.2% (convert to decimal by dividing by 100, i.e., 5.2% = 0.052)

Time (t) = 9 months (convert to years by dividing by 12, i.e., 9 months = 9/12 years=0.75)

Let's calculate the simple interest:

`\text{Simple Interest} = \frac{{21,000 * 0.052 * 0.75}}{{100}}\\\\Simple Interest= (819)/(100)\\\\\text{Simple Interest} =8.19`

So, the simple interest on a loan of $21,000 at 5.2% interest for 9 months is $8.19.