-/10 Points] DETAILS MY NOTES AUFQR2 4.1.P.001. Find the simple interest due (in dollars) on a 4 -year loan of \( \$ 1,250 \) if the annual simple interest rate is \( 7.5 \% \). (See Example 1 in this section.) \( \$ \square \)

To calculate the simple interest, you can use the formula: \[ \text{Simple Interest} = P \times r \times t \] where \( P \) is the principal amount (the initial loan), \( r \) is the annual interest rate (expressed as a decimal), and \( t \) is the time in years. Here, \( P = 1,250 \), \( r = 0.075 \), and \( t = 4 \). Plugging in the values: \[ \text{Simple Interest} = 1,250 \times 0.075 \times 4 = 375 \] So the simple interest due is \( \$375 \). Understanding simple interest can be super helpful when it comes to budgeting for loans or savings. Instead of being bogged down by complex interest rates, you can easily see how much your money will grow or how much a loan will cost you over time. Plus, knowing these calculations can help you negotiate better loan terms! If you ever need to deal with interest rates, remember that many people often forget to convert percentages into decimals before calculating. This tiny mistake can lead to completely inaccurate results! Double-check your calculations and formulas to avoid those notorious slip-ups, and you’ll be a whiz at handling finances!