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)
A) $320.63
B) $232.03
C) $489.65
D) $232.00

Question

Quizplus · Accepted Answer

The simple interest can be calculated using the formula I = PRT, where P is the principal amount ($3,750), R is the rate (8.25% or 0.0825), and T is the time in years (9 months or 0.75 years). I = 3750 * 0.0825 * 0.75 = $232.03.

The Owner of a Hot Dog Stand Receives a Loan