Question

Simple interest of finance

Answer 1

Answer:

The Simple Interest on the loan = $563.5

Explanations:

Simple Interest is given by the formula:

`I\text{ = }(P* R* T)/(100)`

where I is the Simple Interest

P is the principal

R is the rate

T is the time in years

From the question:

P = $10500

R = 9.2%

T = 7 months = 7/12 years

Substituting the values of P, R, and T into the formula:

`\begin{gathered} I\text{ = }(10500*9.2*(7)/(12))/(100) \\ I\text{ = 105 }*\text{ 9.2 }*\text{ }(7)/(12) \\ I\text{ = }563.5 \end{gathered}`

The Simple Interest on the loan = $563.5