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.
Calculate the simple interest for a $25000 loan at 5% after nine months
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