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: $i = prt$ interest formula principal $p$ $2,900$ annual interest rate $r$ $13.61%$ number of years $t$ $14$ enter the dollar amount rounded to the nearest cent. your answer

Explanation:

Step1: Convert rate to decimal

First, convert the annual interest rate from a percentage to a decimal. The rate \( r = 13.61\% = \frac{13.61}{100}= 0.1361 \).

Step2: Identify values

We know the principal \( P = \$2900 \), the rate \( r = 0.1361 \), and the time \( t = 14 \) years.

Step3: Apply simple interest formula

Using the simple interest formula \( I = Prt \), substitute the values:
\( I = 2900\times0.1361\times14 \)
First, calculate \( 2900\times0.1361 = 394.69 \)
Then, calculate \( 394.69\times14 = 5525.66 \)

Answer:

\(\$5525.66\)