The financial officer of Toys and Noise arranges a loan of $7,500, at 8.5% interest, for 33 months. Find the amount of simple interest. (Round to the nearest cent)
A) $1,560.21
B) $1,753.13
C) $8,480.21
D) $5,460.13

Question

Quizplus · Accepted Answer

The simple interest can be calculated using the formula I = PRT, where I is the interest, P is the principal amount ($7,500), R is the annual interest rate (8.5% or 0.085), and T is the time in years (33 months or 2.75 years). So, I = $7,500 * 0.085 * 2.75 = $1,753.125, which rounds to $1,753.13.

The Financial Officer of Toys and Noise Arranges a Loan