Question

using $i = p \times r \times t$, find the interest accrued on a loan of $7,500 at an annual interest rate of 3.5% over a period of 3 years with no payments made. $945 $525 $787.50 $1,050

Explanation:

Step1: Identify values

\( P = 7500 \), \( r = 3.5\% = 0.035 \), \( t = 3 \)

Step2: Apply formula \( I = P \times r \times t \)

\( I = 7500 \times 0.035 \times 3 \)
Calculate \( 7500 \times 0.035 = 262.5 \)
Then \( 262.5 \times 3 = 787.5 \)

Answer:

\$787.50