Question

Oliver borrowed $2,500 to purchase a riding lawn mower for his lawn care business. The bank offered him an interest rate of 20% for 3 months. Calculate the simple interest using I = prt.

Answer 1

[AI-generated answer — Bot GPT 3.5]

The principal amount (p) is $2,500.

The interest rate (r) is 20% or 0.20.
The time in years (t) is 3 months or 3/12 = 0.25 years.
Substituting these values into the formula: I = 2,500 * 0.20 * 0.25 = $125.