# How do you find the simple interest paid after 5 months on a loan of $7,000 borrowed at an annual interest rate of 5%?

##### 1 Answer

Dec 16, 2016

#### Explanation:

The for simple interest is

The time is given in years, so in this case, the time of 5 months has to be converted to years by dividing by 12.

5 months =

This can also be written as: