Question

What is the interest on a loan of $2,500 that is borrowed at 9% for 7 months.

Answer 1

$131.25

Step-by-step explanation:

We'll need to review the simple interest formula for this:

I = P(1rt)

This is where P is the principal amount of money to be invested at an interest rate R% (put this in a decimal while calculating). The variable t is the amount of time in years.

Try to plug in these numbers and use my explanation as a checking tool. If you're having trouble, then no worries. Feel free to follow along :D

I = 2,500*(0.09)(7/12)

= 2,500 * 0.525

I = 131.25

So, the interest of a loan of $2,500 underneath those conditions is $131.25

Please let me know in the comments if anything is wrong. I'll be happy to update this answer!

Good luck and keep studying. I believe in you :D

Answer 2

$1575

Step-by-step explanation: