Respuesta :
Note: Since the interest rate is not mentioned in the question, I'll just assume it is 8% to be able to do the calculations. You can replace this 8% with the interest rate in your question.
The equation that we will use to calculate the interest is:
I = P*r*t where:
I is the interest that we need to calculate
P is the principle amount of money = $12,400
r is the interest rate = 8% = 0.08
t is the time of the loan = 29 months = 29/12 = 2.41667 years
Substitute with the givens in the above mentioned equation to get the interest (I) as follows:
I = 12,400 * 0.08 * 2.41667 = $2397.334
The equation that we will use to calculate the interest is:
I = P*r*t where:
I is the interest that we need to calculate
P is the principle amount of money = $12,400
r is the interest rate = 8% = 0.08
t is the time of the loan = 29 months = 29/12 = 2.41667 years
Substitute with the givens in the above mentioned equation to get the interest (I) as follows:
I = 12,400 * 0.08 * 2.41667 = $2397.334
The amount of interest that will be charged on $12.400 at a rate of 10 1/8% is $3,034.13.
How to calculate a simple interest amount?
If the initial amount (also called as principal amount) is P, and the interest rate is R% annually, and it is left for T years for that simple interest, then the interest amount earned is given by:
[tex]I = \dfrac{P \times R \times T}{100}[/tex]
As per the problem, the principal amount is $12,400, the rate of interest is 10 1/8%, and the time period of the loan is 29 months.
Interest = $12,400 × (10.125/100)× (29/12)
= $3,034.13
Hence, the amount of interest that will be charged on $12.400 at a rate of 10 1/8% is $3,034.13.
The complete question is:
The chief business officer of the plumbing supply company arranges a loan of $12,400 at 10 1/8% interest annually for 29 months. Find the amount of interest. (round to the nearest cent)
Learn more about Simple Interest:
https://brainly.com/question/5319581
#SPJ5
