Problema Solution
A store manager obtained a loan of $25000, at 6 3/8% interest, for 15 months to purchase supplies. Find the amount of simple interest. (Round to the nearest cent)
Answer provided by our tutors
P = $25,000 is the principal
r = 0.06375 or 6.375 % (since 6 3/8 = 6.375)
t = 15 months = 15/12 = 5/4 years
I = the simple interest
I = P*r*t
I = 25000*0.06375*(5/4)
I = $1,992.19
The simple interest will be $1,992.19.