The chief business officer of a construction equipment company arranges a loan of $9,300, at $12 \frac { 1 } { 8 } \%$ interest for 37.5 months. Find the amount of interest. (Round to the nearest cent)
A) $2,761.21
B) $3,583.83
C) $3,523.83
D) $3,722.47

Question

Quizplus · Accepted Answer

The interest can be calculated using the formula $I = PRT$, where $I$ is the interest, $P$ is the principal amount ($9,300), $R$ is the annual interest rate (expressed as a decimal), and $T$ is the time in years. The annual interest rate is $12 \frac{1}{8}\% = 12.125\%$, or 0.12125 when converted to a decimal. The time in years is $37.5$ months, which is $37.5 / 12 = 3.125$ years. Plugging these values into the formula gives $I = 9300 \times 0.12125 \times 3.125 = 3,523.83$.

The Chief Business Officer of a Construction Equipment Company Arranges 1218%12 \frac { 1 } { 8 } \%1281​%

The Chief Business Officer of a Construction Equipment Company Arranges $12 \frac { 1 } { 8 } \%$