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9 July, 09:01

An investment of $2,500 is made for 4 months at an annual simple interest rate of 3.75%. Determine the following values. (For the first answer blank, enter an exact number. For the second answer blank, enter a number. For the third answer blank, enter an exact number as an integer, fraction, or decimal.)

P = $

r =

t =

Find the amount of interest earned (in dollars) on this loan. (Enter a number.)

I = $

Calculate the future value (in dollars) of this loan. (Enter a number.)

$

+4
Answers (1)
  1. 9 July, 09:56
    0
    Step-by-step explanation:

    The formula for determining simple interest is expressed as

    I = PRT/100

    Where

    P represents the principal or amount invested.

    R represents interest rate

    T represents duration of the investment in years.

    From the information given,

    P = 2500

    R = 3.75

    There are 12 months in a year, so

    T = 4/12 = 4/12

    Therefore, the amount of interest earned on this loan is

    I = (2500 * 3.75 * 4) 100 * 12

    I = 37500/1200 = $31.25

    The future value of this loan would be

    2500 + 31.25 = 2531.25
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