What is the simple interest of $1500 for 4 months at 6&3/4% annual interest
1500(.0675/12)(4)
To calculate simple interest, you can use the formula:
Simple Interest = Principal (P) × Rate (R) × Time (T)
Where:
Principal (P) = $1500
Rate (R) = 6.75% (convert to decimal form by dividing by 100, so R = 0.0675)
Time (T) = 4 months (convert to years by dividing by 12, so T = 4/12 = 1/3)
Now, plug in the values into the formula:
Simple Interest = $1500 × 0.0675 × 1/3
To simplify the calculation, let's divide 1/3 by 3/3:
Simple Interest = $1500 × 0.0675 × 1/3
= $1500 × 0.0675 × 1 ÷ 3
= $1500 × 0.0225
= $33.75
Therefore, the simple interest of $1500 for 4 months at 6&3/4% annual interest is $33.75.
To calculate the simple interest of $1500 for 4 months at 6&3/4% annual interest, we can follow these steps:
1. Convert the annual interest rate to a decimal: 6&3/4% = 6.75%. Divide it by 100 to get 0.0675.
2. Divide the annual interest rate by 12 to get the monthly interest rate. In this case, 0.0675 / 12 = 0.005625.
3. Multiply the principal amount ($1500) by the monthly interest rate (0.005625) and the number of months (4) to get the simple interest:
Simple Interest = Principal * Interest Rate * Time
= $1500 * 0.005625 * 4
= $33.75
Therefore, the simple interest for $1500 for 4 months at 6&3/4% annual interest is $33.75.