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Colt1911 [192]
3 years ago
5

You obtain a simple interest loan from National City for $2,500 at 7.5% for 5 years. Find the amount of interest on the loan

Mathematics
1 answer:
natita [175]3 years ago
5 0

Answer:

$937.50

Step-by-step explanation:

interest (I) is calculated as

I = PRT

where P is the principal ( amount borrowed ), R is the rate of interest and T is the time in years

here P = $2500, R = 7.5 and T = 5

I = $2500 × \frac{7.5}{100} × 5 = 25 × 7.5 × 5 = $937.50


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