The simple interest that the restaurant owes to the bank after 7 months is $403.
The principal amount the restaurant borrows from the bank = $15,200.
The rate of interest per year the bank provides = 4.55%
The time period the restaurant borrowed the money from the bank = 7 months.
We have to calculate the simple Interest the bank received from the restaurant after 7 months of borrowing $15200.
<h3>What is simple interest?</h3>
Simple interest is the amount of interest charged on a given principal amount P at a given rate of interest R for a given period of time.
The formula used to calculate simple interest is:
SI = (PXRXT) / 100...........(1)
Where P = principal amount
R = rate of interest
T = time period in years.
We have,
P = $15,200
R = 4.55%
T = 7 months.
Time is in months and we need to convert it into years.
We know that,
12 month = 1 year
So,
7 months = 7 / 12 years
So we have,
T = 7 / 12 years.
Putting P = 15200, R = 4.55 and T = 7/12 in (1)
We get,
SI = [ 15200 x 4.55 x (7/12) ] / 100
SI = (15200 x 4.55 x 7) / (12 x 100)
SI = 484120 / 1200
SI = 403.43
Rounding to the nearest whole number.
SI = $403
Thus the simple interest that the restaurant owes to the bank after 7 months is $403.
Learn more about simple interests here:
brainly.com/question/1156423
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