What is the simple interest of $1500 for 4 months at 6&3/4% annual interest
$33.75
I = PRT
I = 1500 * 0.333 * 0.0675
$33.75
To find the simple interest for a given amount, time period, and interest rate, you can use the formula:
Simple Interest = (Principal × Rate × Time) / 100
In this case, the principal is $1500, the rate is 6&3/4% per annum, and the time is 4 months.
To calculate the rate, first convert 6&3/4% to its decimal form. Divide the percentage by 100:
6&3/4% = (6 + 3/4)% = 6.75% = 6.75/100 = 0.0675
Next, convert the time from months to years. Since the rate is given on an annual basis, divide the time by 12 (months in a year):
4 months / 12 months = 0.3333 (rounded to 4 decimal places)
Now we have all the necessary values for the formula:
Principal = $1500
Rate = 0.0675
Time = 0.3333
Applying these values into the formula:
Simple Interest = (1500 × 0.0675 × 0.3333) / 100
Calculating the expression within the parentheses:
1500 × 0.0675 × 0.3333 = 33.749625
Dividing this by 100, we get:
Simple Interest = 33.749625 / 100 = $33.75 (rounded to 2 decimal places)
Therefore, the simple interest for $1500 for 4 months at an annual interest rate of 6&3/4% is $33.75.
01349662500
Well, well, well, let's calculate that simple interest together, shall we?
First, let's convert the annual interest rate to a monthly rate. Since there are 12 months in a year, we divide 6.75% by 12 to get a monthly interest rate of 0.5625%.
Now, let's plug in the numbers. $1500 principal, 4 months, and a monthly interest rate of 0.5625%.
Simple interest = (Principal × Rate × Time)
= ($1500 × 0.5625% × 4 months)
Calculating that, we get:
Simple interest = $134.06
So, the simple interest on this clown-approved loan would be approximately $134.06.