Deana, the business manager of Waggin' Tails Pet Supply arranges a loan of \( \$ 2,500 \), at \( 6 \% \) interest, for 18 months. Find the amount of interest. select one: a. \( \$ 150 \) b. \( \$ 2,350 \) c. \( \$ 225 \) d. \( \$ 2,700 \)

To find the amount of interest on the loan, we can use the formula for simple interest: \[ I = P \times r \times t \] where: - \( I \) is the interest, - \( P \) is the principal amount (the initial loan amount), - \( r \) is the rate of interest (as a decimal), - \( t \) is the time the money is borrowed for (in years). ### Step 1: Identify the known values - \( P = 2500 \) - \( r = 6\% = 0.06 \) - \( t = 18 \text{ months} = \frac{18}{12} = 1.5 \text{ years} \) ### Step 2: Substitute the values into the formula Now we can substitute the known values into the formula: \[ I = 2500 \times 0.06 \times 1.5 \] ### Step 3: Calculate the interest Let's perform the calculation step by step: 1. Calculate \( 0.06 \times 1.5 \): \[ 0.06 \times 1.5 = 0.09 \] 2. Now multiply by the principal: \[ I = 2500 \times 0.09 \] 3. Calculate \( 2500 \times 0.09 \): \[ I = 225 \] ### Conclusion The amount of interest is \( \$ 225 \). Thus, the correct answer is: c. \( \$ 225 \)