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Sever21 [200]
3 years ago
11

The owner of a hot dog stand receives a loan of $3,750 at 8.25% for 9 months. find the amount of simple interest.(round to the n

earest cent)
Mathematics
1 answer:
Ivan3 years ago
7 0
Hello! The formula for simple interest is prt. That means you multiply the principal (initial amount) by the rate (simple interest percentage), by the amount of time (could be in months or years). So, the loan is $3,750 and the rate is 8.25% for 9 months. 9 months is 3/4 of the year, because there are 12 months in 1 year and 9/12 is 0.75. Let's multiply. 3,750 * 8.25% (0.0825) is 309.375 Now, multiply that number by 0.75 to get 232.03125 or 232.03 when rounded to the nearest hundredth (cent). The amount of simple interest is $232.03.
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