To calculate the simple interest, we use the formula:

$I = P \times r \times t$

Where:

• $I$ is the simple interest.
• $P$ is the principal amount.
• $r$ is the annual interest rate (as a decimal).
• $t$ is the time in years.

Step 1: Convert the time

The term is given as 450 days, but the formula requires time in years. To convert days to years:

$t = \frac{450}{365} \approx 1.2329 \, \text{years}$

Step 2: Calculate the interest

Now, substitute the values into the formula:

• $P = 8134.19$
• $r = \frac{5.52}{100} = 0.0552$
• $t = 1.2329 \, \text{years}$

$I = 8134.19 \times 0.0552 \times 1.2329$

Let me calculate this.The simple interest for the loan is approximately $553.57.

Would you like more details or have any further questions?

Here are 5 related questions to expand on this concept:

1. How does the time period affect the simple interest amount?
2. What would the interest be if the interest rate increased to 6%?
3. How does simple interest differ from compound interest?
4. If the principal was doubled, what would the new simple interest be?
5. How can the total amount (principal + interest) be calculated after the loan term?

Tip: Always make sure to convert the time period (days, months, etc.) to years when calculating simple interest.