How do you solve 5400 at 7.5% for 5 months?

The interest is: $2025.00

Explanation:

You want to calculate the interest on $5400 at 7.5% interest per month after 5 month(s).

The formula we'll use for this is the simple interest formula, or:

Where:

P is the principal amount, $5400.00.

r is the interest rate, 7.5% per month, or in decimal form, 7.5/100=0.075.

t is the time involved, 5month(s) time periods.

Since your interest rate is "per month" and you gave your time interval in "month(s)" we need to convert your time interval into "month" as well.

So, t is 5month time periods.

To find the simple interest, we multiply 5400 × 0.075 × 5 to get that:

The interest is: $2025.00

Usually now, the interest is added onto the principal to figure some new amount after 5 month(s),

or 5400.00 + 2025.00 = 7425.00. For example:

If you borrowed the $5400.00, you would now owe $7425.00

If you loaned someone $5400.00, you would now be due $7425.00

If owned something, like a $5400.00 bond, it would be worth $7425.00 now.

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