7
practice testMultiple Choice

Practice Test

Question 7 • Financial Algebra/Mathematics

Using I=P×r×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.

Answer
A
787 point 5 0 dollars
B
1 dollars comma 050
C
525 dollars
D
945 dollars

Explanation

Use the simple interest formula I = P × r × t. Substitute P = $7,500, r = 0.035, and t = 3: I = 7,500 × 0.035 × 3 = $787.50. The interest accrued is $787.50, which is choice A.

AI-written and checked against the verified answer.

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