The annual rate of simple interest on money loaned is equal to the interest earned divided by the product of the principal and the time in years. What is the interest on a loan is when the annual rate is 8.5%, the principal is $4,100.00, and the time is 2 3/4 years.

Answer 1

To find the interest on a loan, we can use the formula:

Interest = Principal * Rate * Time

Given that the annual rate is 8.5%, the principal is $4,100.00, and the time is 2 3/4 years (or 11/4 years), we can plug in these values into the formula:

Interest = $4,100.00 * 8.5% * 11/4

First, let's convert the percentage rate to its decimal form:

8.5% = 8.5/100 = 0.085

Now, let's calculate the interest:

Interest = $4,100.00 * 0.085 * 11/4
= $4,100.00 * 0.085 * 11/4
= $3,117.63

Therefore, the interest on the loan is $3,117.63.