24) what is the simple interest on a loan of $5,500 at an annual rate of 5% for a time of three…

24) what is the simple interest on a loan of $5,500 at an annual rate of 5% for a time of three years?\nprincipal: $5,500\nannual rate: 5%\ntime: 3 years\noa) $6,325.00\nob) $247.50\noc) $907.50\nod) $825\nsave\n25) in the previous problem, what is the total amount that would be paid to the lending institution for the loan and interest?

24) what is the simple interest on a loan of $5,500 at an annual rate of 5% for a time of three years?\nprincipal: $5,500\nannual rate: 5%\ntime: 3 years\noa) $6,325.00\nob) $247.50\noc) $907.50\nod) $825\nsave\n25) in the previous problem, what is the total amount that would be paid to the lending institution for the loan and interest?

Answer

Explanation:

Step1: Identify the formula for simple interest

The formula for simple interest is (I = Prt), where (P) is the principal amount, (r) is the annual interest rate (in decimal form), and (t) is the time in years.

Step2: Convert the percentage rate to decimal

Given (r = 5%=\frac{5}{100}=0.05), (P=$5500), and (t = 3) years.

Step3: Substitute the values into the formula

[ \begin{align*} I&=Prt\ &=5500\times0.05\times3\ &=5500\times0.15\ & = 825 \end{align*} ]

Answer:

D. $825