Calculate the simple interest on a loan of $30,300 for 6 months at 25% per annum.

To calculate the simple interest, we use the formula:

\[
\text{Simple Interest} = \frac{P \times R \times T}{100}
\]

Where:
- $ P $ is the principal amount (the initial loan amount).
- $ R $ is the rate of interest per annum.
- $ T $ is the time in years.

Given:
- $ P = 30,300 $ dollars
- $ R = 25\% $ per annum
- $ T = \frac{6}{12} = 0.5 $ years (since 6 months is half a year)

Substituting the values into the formula:

\[
\text{Simple Interest} = \frac{30,300 \times 25 \times 0.5}{100}
\]

Let's calculate that.The simple interest on a loan of $30,300 for 6 months at 25% per annum is **$3,787.50**.

Do you want more details or have any questions? 

Here are some related questions you might find helpful:
1. How is the formula for simple interest derived?
2. What is the difference between simple and compound interest?
3. How would the interest change if the loan period was 1 year?
4. What if the interest rate was compounded semi-annually?
5. How does the simple interest formula change for different time periods?
6. Can simple interest ever be negative?
7. How does inflation affect the real value of the interest paid?
8. How is simple interest applied in personal finance?

**Tip:** Always double-check the time period used in interest calculations, as it can significantly impact the final amount.

Learn how to calculate the simple interest on a loan of $30,300 for 6 months at 25% per annum using the simple interest formula. This problem involves understanding percentages, time calculations, and applying the basic formula for simple interest.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation