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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 nearest cent)

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cedarwood79
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.
Lanuel

The amount of simple interest to the nearest cent is $232.03.

Given the following data:

  • Interest rate = 8.25% = 0.0825.
  • Principal = $3,750
  • Time = 9 months

To find the amount of simple interest to the nearest cent:

How to calculate simple interest.

Mathematically, simple interest is given by this formula:

[tex]I = PRT[/tex]

Where:

  • S.I is the simple interest.
  • P is the principal or loan amount.
  • R is the interest rate.
  • T is the time measured in years.

Conversion:

12 months = 1 year.

9 months = [tex]\frac{9}{12}[/tex] = 0.75 year.

Substituting the given parameters into the formula, we have;

[tex]I=3750 \times 0.0825 \times 0.75[/tex]

Simple interest = $232.03.

Read more on simple interest here: https://brainly.com/question/24341207