Answer:
The simple interest is Prt
The simple interest on the money will be $24300
Explanation:
The complete question is shown below
The principal P is borrowed at simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume 360 days in a year. P=$18,000, r=7.5%, t=18 months
Principal = P
Interest rate = r
Time period = t
simple interest owed for the use of the money will be gotten as below
The percentage of the principal that will be owed per unit period is the rate r
The total rate that it will be involved in this time period will be the product of the rate and the time = r x t = rt
Finally, to know the amount of interest that this rate will result to, we multiply the total rate in the time period by the original principal borrowed
Total interest = Prt
For a simple interest on the principal P = $18,000,
the interest rate = 7.5% = 7.5/100 = 0.075,
time period = 18 months
we assume the interested is calculated on a monthly basis
Simple interest = Prt
==> 18000 x 0.075 x 18 = $24300