the principal p is borrowed at a simple interest rate r for a period of time t. find the simple interest…

the principal p is borrowed at a simple interest rate r for a period of time t. find the simple interest owed for the use of the money. assume 365 days in a year. p = $7000, r = 1.5%, t = 15 months. the simple interest owed for the use of the money is $ (do not round until the final answer. then round to the nearest cent as needed.)

the principal p is borrowed at a simple interest rate r for a period of time t. find the simple interest owed for the use of the money. assume 365 days in a year. p = $7000, r = 1.5%, t = 15 months. the simple interest owed for the use of the money is $ (do not round until the final answer. then round to the nearest cent as needed.)

Answer

Explanation:

Step1: Convert time to years

Since there are 12 months in a year, $t=\frac{15}{12}= 1.25$ years.

Step2: Use simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal, $r$ is the interest rate (in decimal form), and $t$ is the time in years. Given $P = 7000$, $r=0.015$ (since $1.5%=0.015$), and $t = 1.25$. Then $I=7000\times0.015\times1.25$.

Step3: Calculate the interest

$I = 7000\times0.015\times1.25=7000\times0.01875 = 131.25$.

Answer:

$131.25$