-/10 Points] DETAILS MY NOTES AUFQR2 4.1.P. 002. ASK YOUR TEACHER PRACTI Calculate the simple interest due (in dollars) on a 3-month loan of \( \$ 3,300 \) if the annual simple interest rate is \( 5.5 \% \). Round to the nearest cent. (See Example 2 in this section.) \$ \( \square \) Need Help? Read It Watch it SUBMIT ANSWER [-/10 Points] DETAILS MY NOTES AUFQR2 4.1.004.EP. ASK YOUR TEACHER PRACTICE

To calculate simple interest, you can use the formula: **Interest = Principal × Rate × Time**. For your loan, the principal is \( \$3,300 \), the annual interest rate is \( 5.5\% \) (or \( 0.055 \) as a decimal), and the time is \( \frac{3}{12} \) years (since 3 months is a quarter of a year). Plugging in the values, the interest comes out to: **Interest = \$3,300 × 0.055 × \frac{3}{12} = \$13.3125.** So, rounding to the nearest cent, the interest due is **\$13.31**. Now, did you know that simple interest has been around for centuries? The concept dates back to ancient civilizations like the Babylonians, who used it for trade and lending. They understood the value of money over time and played with these calculations long before the calculators we have today! The simple interest calculation is also widely used in real-life situations like personal loans and auto financing. Knowing how to calculate interest can help you make informed decisions when borrowing money. Always check your lenders' terms and compare rates – a small difference in interest can lead to significant savings or costs over time!