To calculate the simple interest, we can use the formula:

$\text{Simple Interest} = P \times r \times t$

Where:

• $P$ is the principal amount (loan amount),
• $r$ is the annual interest rate (expressed as a decimal),
• $t$ is the time the money is borrowed for, in years.

Given:

• $P = 31,500$ dollars,
• $r = 9.8\% = 0.098$,
• $t = 11$ months $= \frac{11}{12}$ years.

Now, let's substitute these values into the formula:

$\text{Simple Interest} = 31,500 \times 0.098 \times \frac{11}{12}$

Calculating this:

$\text{Simple Interest} = 31,500 \times 0.098 \times 0.9167$ $\text{Simple Interest} = 31,500 \times 0.089986$ $\text{Simple Interest} = 2,834.10$

Thus, the simple interest on the loan is $2,834.10.

Would you like more details or have any further questions?

Here are 5 related questions:

1. How would the simple interest change if the loan amount was $40,000?
2. How does the time period affect the interest calculation?
3. What is the formula for calculating compound interest?
4. How do you convert an interest rate from percentage to decimal form?
5. What is the difference between simple interest and compound interest?

Tip: Always remember to convert the interest rate to decimal form by dividing the percentage by 100 before using it in calculations.