Question

A restaurant borrows 13,100 from a local bank for two months the local bank charges simple interest at an annual rate of 11% for this loan assume each month is one out of 12 of a year

Answer 1

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

Simple Interest (SI) = (Principal Amount * Annual Interest Rate * Time) / (Number of Months in a Year)

In this case, the principal amount is $13,100, the annual interest rate is 11%, and the time is 2 months. Since we're assuming each month is one out of 12 of a year, the number of months in a year is 12.

Let's calculate the simple interest:

SI = (13,100 * 0.11 * 2) / 12

SI = (2,874) / 12

SI = $239.50

So, the simple interest on the loan for two months is $239.50