Bob takes a loan of $7,000 on 5% interest rate for 5 months. How do you calculate the simple interest?
Answers
Answered by
1
Simple Interest = $145.83
Explanation:
Here, loan (P)= $7,000, Rate of Interest (R) = 5% and
no. of years (T) = 5 months = 5/12 year.
We know, Simple Interest
(
I
)
=
P
R
T
100
So,
I
=
7
,
000
⋅
5
⋅
5
12
100
=
875
6
=
145.83
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