The Simple Interest on the loan = $563.5
Explanations:Simple Interest is given by the formula:
[tex]I\text{ = }\frac{P\times R\times T}{100}[/tex]where I is the Simple Interest
P is the principal
R is the rate
T is the time in years
From the question:
P = $10500
R = 9.2%
T = 7 months = 7/12 years
Substituting the values of P, R, and T into the formula:
[tex]\begin{gathered} I\text{ = }\frac{10500\times9.2\times\frac{7}{12}}{100} \\ I\text{ = 105 }\times\text{ 9.2 }\times\text{ }\frac{7}{12} \\ I\text{ = }563.5 \end{gathered}[/tex]The Simple Interest on the loan = $563.5
