Find the simple interest on a loan of $18,000 at 9.8% interest for 9 months $ Give your answer to the nearest cent

Understand Formula: Understand the formula for simple interest. Simple interest can be calculated using the formula I = PRT, where I is the interest, P is the principal amount, R is the annual interest rate (in decimal form), and T is the time in years.Convert Rate to Decimal: Convert the annual interest rate to a decimal. The annual interest rate is 9.8%, which as a decimal is 0.098. Calculation: 9.8% = 9.8/100 = 0.098Convert Time to Years: Convert the time period from months to years. Since there are 12 months in a year, 9 months is equal to 9/12 or 0.75 years. Calculation: 9 months * (1 year / 12 months) = 9/12 = 0.75 yearsCalculate Simple Interest: Calculate the simple interest using the values. Now we can use the formula I = PRT with P = $18,000, R = 0.098, and T = 0.75. Calculation: I = 18000 * 0.098 * 0.75Perform Calculation: Perform the calculation to find the interest. Calculation: I = 18000 * 0.098 * 0.75 = $1323Round to Nearest Cent: Round the answer to the nearest cent. Since the interest calculated is in dollars, we need to round it to the nearest cent. $1323 is already to the nearest cent.

Resources

Testimonials

Plans

Resources

Testimonials

Plans

AI tutor

Welcome to Bytelearn!

Let’s check out your problem:

Find the simple interest on a loan of
$18,000 at
9.8% interest for 9 months

$
Give your answer to the nearest cent

Find the simple interest on a loan of $\$ 18,000$ at $9.8 \%$ interest for $9$ months $\newline$ $\$$ _____ $\newline$ Give your answer to the nearest cent

View step-by-step help

Home

Math Problems

Algebra 1

Exponential growth and decay: word problems

Full solution

Q. Find the simple interest on a loan of

\$ 18,000

9.8 \%

interest for

9

months

\newline

\$

_____

\newline

Give your answer to the nearest cent

Understand Formula: Understand the formula for simple interest. $\newline$ Simple interest can be calculated using the formula $I = PRT$ , where $I$ is the interest, $P$ is the principal amount, $R$ is the annual interest rate (in decimal form), and $T$ is the time in years.
Convert Rate to Decimal: Convert the annual interest rate to a decimal. $\newline$ The annual interest rate is $9.8\%$ , which as a decimal is $0.098$ . $\newline$ Calculation: $9.8\% = \frac{9.8}{100} = 0.098$
Convert Time to Years: Convert the time period from months to years. $\newline$ Since there are $12$ months in a year, $9$ months is equal to $\frac{9}{12}$ or $0.75$ years. $\newline$ Calculation: $9$ months $\times \left(\frac{1 \text{ year}}{12 \text{ months}}\right) = \frac{9}{12} = 0.75$ years
Calculate Simple Interest: Calculate the simple interest using the values. $\newline$ Now we can use the formula $I = PRT$ with $P = \$18,000$ , $R = 0.098$ , and $T = 0.75$ . $\newline$ Calculation: $I = 18000 \times 0.098 \times 0.75$
Perform Calculation: Perform the calculation to find the interest. $\newline$ Calculation: $I = 18000 \times 0.098 \times 0.75 = \$(1323)$
Round to Nearest Cent: Round the answer to the nearest cent. $\newline$ Since the interest calculated is in dollars, we need to round it to the nearest cent. $\$1323$ is already to the nearest cent.