33. Calculate simple interest paid on each loan.
(a) $\$ 300,9 \frac{1}{2} \%, 1$ year
(b) $\$ 120,10 \frac{3}{4} \%, 5$ months
Answer
Hence, the simple interest paid on loan (a) is \(\boxed{\$28.5}\) and on loan (b) is \(\boxed{\$5.375}\)
Step 1 ：Given the principal amount (P), rate of interest (R) and time period (T) for two loans, we are to calculate the simple interest (I) for each loan. The formula for simple interest is given by: \(I = PRT\)
Step 2 ：For loan (a), we have: \(P_a = \$300\), \(R_a = 9.5\%\) and \(T_a = 1\) year
Step 3 ：Substituting these values into the simple interest formula, we get: \(I_a = P_a * R_a * T_a = \$300 * 9.5\% * 1 = \$28.5\)
Step 4 ：For loan (b), we have: \(P_b = \$120\), \(R_b = 10.75\%\) and \(T_b = 5/12\) year (since 5 months is equivalent to 5/12 year)
Step 5 ：Substituting these values into the simple interest formula, we get: \(I_b = P_b * R_b * T_b = \$120 * 10.75\% * 5/12 = \$5.375\)
Step 6 ：Hence, the simple interest paid on loan (a) is \(\boxed{\$28.5}\) and on loan (b) is \(\boxed{\$5.375}\)
