# Chapter 1 - Section 1.16 - Application Involving Percent: Business and Personal Finance - Exercises: 3

$\$9,450$#### Work Step by Step Find the interest using the formula$I=Prt$where$P$=principal loan amount,$r=$annual interest rate, and$t$=time in years.$I=\$7500 \times 6.5\% \times 4 \\=\$7500 \times 0.065 \times 4 \\=\$1,950$ Find the total amount due by adding the interest to the principal amount borrowed: $=\$7,500 + \$1,950 \\=\$9,450\$

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