Calculate the simple interest for a $25000 loan at 5% after nine months
To calculate the simple interest, you need to multiply the principal (the amount of the loan) by the interest rate and the time period.
The formula for simple interest is:
Simple Interest = Principal * Interest Rate * Time
In this case, the principal is $25,000, the interest rate is 5% (or 0.05), and the time is 9 months (or 0.75 years, since 9 months equals 3 quarters of a year).
Simple Interest = $25,000 * 0.05 * 0.75
Simple Interest = $937.50
Therefore, the simple interest for a $25,000 loan at 5% after nine months is $937.50.