6. -/1 points 0/5 submissions used calculate the simple interest due (in dollars) on a 3 - month loan of…

6. -/1 points 0/5 submissions used calculate the simple interest due (in dollars) on a 3 - month loan of $2,300 if the annual simple interest rate is 4.5%. round to the nearest cent. (see example 2 in this section.)

6. -/1 points 0/5 submissions used calculate the simple interest due (in dollars) on a 3 - month loan of $2,300 if the annual simple interest rate is 4.5%. round to the nearest cent. (see example 2 in this section.)

Answer

Explanation:

Step1: Identify the formula

The simple - interest formula 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 annual interest rate to decimal

The annual interest rate $r = 4.5%=0.045$.

Step3: Convert the time to years

The time $t$ is 3 months. Since there are 12 months in a year, $t=\frac{3}{12}=0.25$ years.

Step4: Identify the principal amount

The principal amount $P = 2300$.

Step5: Calculate the simple interest

Substitute $P = 2300$, $r = 0.045$, and $t = 0.25$ into the formula $I=Prt$. $I=2300\times0.045\times0.25$ $I = 2300\times0.01125$ $I = 25.875\approx25.88$

Answer:

$25.88$