Question

Find the interest on the following loan.

$1000 at 2.5% for 3 months
(Round to the nearest cent as needed.)

Answer 1

$75

Explanation:

The formula for simple interest is I = P*r*t.

P = 1000

r = 2.5%

t = 3

Before we calculate, we need to turn the rate into a decimal.

2.5/100 = 0.025

Plug into the formula:

I = 1000*0.025*3

I = 75

Hope this helps!