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Find the simple interest owed for the following loan. Principal = 2775 Rate = 7.5% Time = 5 1/2 years

1 Answer

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We would apply the simple interest formula which is xpressed as

I = PRT/100

Where

I represents interest

P represents principal or amount borrowed

T represents time in years

R represents rate.

From the information given,

P = 2775

R = 7.5

T = 5 1/2 = 5.5

I = (2775 * 7.5 * 5.5)/100

I = 1144.6875

Rounding to the nearest cent,

I = 1144.69

User John Rocha
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