Simple interest rate

Question

The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume

365

days in a year.

P​ =

​$9000​,

r​ =

7.5​%,

t​ =

18

months

Answer 1

simple interest = Prt

=9,000 x .075 x 1.5

= $1,012.50 in simple interest (no compounding)

18 months= 1.5 years

7.5% = APR= Annual Percentage Rate = .075

P=Principal=$9000