The business manager of Paws and Claws Pet Supply arranges a loan of $3,500, at 6.5% interest, for 30 months. Find the amount of interest.
A) $568.75
B) $470.25
C) $335.50
D) $455.00

Question

Quizplus · Accepted Answer

The interest can be calculated using the formula I = PRT, where I is the interest, P is the principal amount ($3,500), R is the annual interest rate (6.5%, or 0.065 as a decimal), and T is the time in years (30 months is 2.5 years). So, I = $3,500 * 0.065 * 2.5 = $568.75.

The Business Manager of Paws and Claws Pet Supply Arranges