Question

Calculate the simple interest to be paid on a loan with the given principal, annual percentage rate, and number of years.

Use this simple interest formula:



Interest Formula
Principal
$8,300
Annual interest rate
7.72%
Number of years
7
Enter the dollar amount rounded to the nearest cent.

Answer 1

To calculate the simple interest, we can use the formula:

\[
\text{Simple Interest} = \text{Principal} \times \text{Rate} \times \text{Time}
\]

Where:
- Principal = $8,300
- Rate = 7.72% = 0.0772 (as a decimal)
- Time = 7 years

Now, plugging in the values:

\[
\text{Simple Interest} = 8300 \times 0.0772 \times 7
\]

Calculating it step by step:

1. Calculate \(0.0772 \times 7\):

\[
0.0772 \times 7 = 0.5404
\]

2. Now calculate the interest:

\[
\text{Simple Interest} = 8300 \times 0.5404
\]

Calculating this:

\[
8300 \times 0.5404 = 4483.32
\]

Therefore, the simple interest to be paid on the loan is **$4,483.32**.