Question

What is the simple interest on a 10 month loan of $8,400 at 7.75%?

Answer 1

P = principal = 8400

r = interest rate in decimal form = 0.0775

t = time in years = 10/12 = 5/6

i = simple interest

i = P*r*t

i = 8400*0.0775*(5/6)

i = 542.50 dollars is the answer