Choose the one alternative that best completes the statement or answers the question.
Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent.
Martin takes out a simple-interest loan at 7.5 %. After 6 months, the amount of interest on the loan is $69.64. What was the amount of the loan?
I do not understand how to do this homework question can someone please help me to understand how to figure this one out thank you so much
principle= rate x time
p=rt
$69.64=7.5% x t
solve for t
But how do you figure out T?
Out of the multiple choice answer nothing is coming close to one of the answers
these are the multiple choice answers
A)
$2116.98
B)
$18.57
C)
$1857
D)
$1818.44
Allison's equation is wrong.
interest earned = P*i*t, where t = 0.5 years, P is the original loan amount, and i = 0.075 is the annual interest rate.
69.64 = 0.0375 P
P = $1857
To solve this problem, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, we are given the interest amount ($69.64), the interest rate (7.5%), and the time (6 months). We need to find the principal amount (the loan).
First, convert the interest rate to decimal form by dividing it by 100:
Rate = 7.5% = 7.5/100 = 0.075
Now, rearrange the formula to solve for the principal:
Principal = Interest / (Rate * Time)
Substitute the given values into the formula:
Principal = $69.64 / (0.075 * 6)
Principal = $69.64 / 0.45
Principal ≈ $154.75
Therefore, the amount of the loan was approximately $154.75.