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pav-90 [236]
3 years ago
12

Perry borrows $350 at a simple interest rate of 4.5%. Perry pays back the loan in 30 months. How much interest does Perry pay on

the loan? (Round to the nearest penny, hundredth.)
Mathematics
1 answer:
Nitella [24]3 years ago
3 0

Answer: the interest on the loan is $39.38

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the loan.

P represents the principal or amount taken as loan

R represents interest rate

T represents the duration of the loan in years.

From the information given,

P = $350

R = 4.5%

There are 12 months in a year. Converting 30 months into years, it becomes

30/12 = 2.5. so

T = 2.5 years

Therefore

I = (350 × 4.5 × 2.5)/100

I = $39.38

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