f) Calculate the simple interest for a loan for $24,700, for 2 1/4 years at 3.4% interest per year. Round to the nearest cent.
simple interest.
2 1/4 years is 9 quarters.
Interest:
24700*9*.034/4 =
To calculate the simple interest for a loan, you'll need to use the formula:
Simple Interest = Principal x Rate x Time
1. First, let's identify the information given in the question:
- Principal (P) = $24,700
- Rate (R) = 3.4% per year
- Time (T) = 2 1/4 years
2. Convert the mixed fraction (2 1/4) into a decimal:
- 2 1/4 = 2 + 1/4 = 2.25 years
3. Plug in the values into the formula:
Simple Interest = $24,700 x 3.4% x 2.25
4. Convert the rate from a percentage to a decimal:
- 3.4% = 3.4/100 = 0.034
5. Calculate the simple interest:
Simple Interest = $24,700 x 0.034 x 2.25
6. Multiply the values:
Simple Interest = $1,709.525
7. Round the answer to the nearest cent:
Rounded Simple Interest = $1,709.53
Therefore, the simple interest for a loan of $24,700 for 2 1/4 years at 3.4% interest per year, rounded to the nearest cent, is $1,709.53.