Imagine that you have just taken out a loan for one year for $4,500. What would be the simple interest on this loan if the annual percentage rate were 6.5%?

4500 * 0.065 = ?

292.50 To calculate the simple interest on this loan, you need to multiply the principal amount, the interest rate, and the time period. In this case:

Principal = $4,500
Annual Percentage Rate (APR) = 6.5%
Time Period = 1 year

First, convert the annual interest rate to a decimal by dividing it by 100:
6.5% = 6.5/100 = 0.065

Next, we can use the simple interest formula:
Simple Interest = Principal x Rate x Time

Plugging in the values:
Simple Interest = $4,500 x 0.065 x 1
Simple Interest = $292.50

Therefore, the simple interest on this loan would be $292.50.