Respuesta :
Answer:
simple interest is $262.5
Step-by-step explanation:
Given data
principal (p) = $7000
rate (r) = 2.5%
time period (t) = 18 months = 18 × 30 days = 540 days = 540/360 = 1.5 year
to find out
simple interest
solution
we know simple interest formula i.e.
simple interest = ( principal × rate × time ) / 100 .................1
put the value principal rate and time in equation 1 and we get interest i.e.
simple interest = ( principal × rate × time ) / 100
simple interest = ( 7000 × 2.5 × 1.5 ) / 100
simple interest = 262.5
so simple interest is $262.5
The simple interest owed for the use of the money is $262.50.
What is the interest owed for the use of the money?
We know the formula of simple interest, substitute the values in it,
[tex]\rm Simple\ Interest = \dfrac{P \times R \times T}{100}[/tex]
Given to us
Principle Amount, P = $7,000
Rate of interest, R = 2.5%
Time period, T = 18 months = 1.5 years
[tex]\rm Simple\ Interest = \dfrac{P \times R \times T}{100}[/tex]
Substitute the values,
[tex]\rm Simple\ Interest = \dfrac{7,000 \times 2.5 \times 1.6}{100} = \$262.50[/tex]
Hence, the simple interest owed for the use of the money is $262.50.
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