a store manager obtained a loan of 25,000, at 6 3/8 % interest, for 15 months to purchase supplies. Find the amount of the simple interest.
I = PRT
I = 25,000 * 0.06375 * 1.25
To find the amount of simple interest, we need to use the formula:
Simple Interest = (Principal amount) x (Rate) x (Time)
Given:
Principal amount (loan) = $25,000
Rate = 6 3/8% = 6.375% (in decimal form, 0.06375)
Time = 15 months
Now, let's substitute these values into the formula and calculate the simple interest.
Simple Interest = $25,000 x 0.06375 x 15
To calculate this, multiply $25,000 by 0.06375 and then multiply that result by 15.