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The principal p is borrowed at a simple interest rate of par for a. Of time

User Joseglego
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1 Answer

3 votes

We have the next information

P=Principal=$4000

r=rate=1.5%

t=15 months= 15/2=1.25 years


A=P\mleft(1+rt\mright)
A=4000(1+(0.015)(1.25))=4075

For the interest


I=A-P=4075-4000=75

The interest is $75

User Sunderls
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