The business manager of Toys and Noise arranges a loan of \( \$ 7,500 \), at \( 8.5 \% \) interest, for 33 months. Find the amount of simple interest. Select one: a. \( \$ 1,560.21 \) b. \( \$ 1,753.13 \) c. \( \$ 8,480.21 \) d. \( \$ 5,460.13 \)

To find the amount of simple interest, we can use the formula for simple interest: \[ \text{Simple Interest} = \frac{P \times R \times T}{100} \] Where: - \( P \) is the principal amount (the initial amount borrowed), - \( R \) is the rate of interest (in %), - \( T \) is the time period (in years). Given: - Principal amount (\( P \)) = $7,500 - Rate of interest (\( R \)) = 8.5% - Time period (\( T \)) = 33 months First, we need to convert the time period from months to years: \[ T = \frac{33}{12} = 2.75 \text{ years} \] Now, we can substitute the values into the formula for simple interest: \[ \text{Simple Interest} = \frac{7500 \times 8.5 \times 2.75}{100} \] Let's calculate the simple interest. Calculate the value by following steps: - step0: Calculate: \(\frac{7500\times 8.5\times 2.75}{100}\) - step1: Multiply the terms: \(\frac{175312.5}{100}\) - step2: Convert the expressions: \(\frac{\frac{350625}{2}}{100}\) - step3: Multiply by the reciprocal: \(\frac{350625}{2}\times \frac{1}{100}\) - step4: Reduce the numbers: \(\frac{14025}{2}\times \frac{1}{4}\) - step5: Multiply the fractions: \(\frac{14025}{2\times 4}\) - step6: Multiply: \(\frac{14025}{8}\) The amount of simple interest is $1,753.13. Therefore, the correct answer is b. $1,753.13.