Answer:
$131.25
Step-by-step explanation:
We'll need to review the simple interest formula for this:
I = P(1rt)
This is where P is the principal amount of money to be invested at an interest rate R% (put this in a decimal while calculating). The variable t is the amount of time in years.
Try to plug in these numbers and use my explanation as a checking tool. If you're having trouble, then no worries. Feel free to follow along :D
I = 2,500*(0.09)(7/12)
= 2,500 * 0.525
I = 131.25
So, the interest of a loan of $2,500 underneath those conditions is $131.25
Please let me know in the comments if anything is wrong. I'll be happy to update this answer!
Good luck and keep studying. I believe in you :D
