How much interest was pald on a 1500 loan for seven months at an annual interest rate a 4.5% ?(Round your answer to 2 decimal places.) Interest paid square

## Step 1: Convert the interest rate to a decimal.<br />### The annual interest rate is given as 4.5%. To convert this percentage to a decimal, divide by 100. $4.5\% = \frac{4.5}{100} = 0.045$<br /><br />## Step 2: Convert the time period to years.<br />### The loan period is seven months. Since there are 12 months in a year, the time in years is $\frac{7}{12}$.<br /><br />## Step 3: Calculate the interest earned.<br />### Use the formula $i = prt$, where $i$ is the interest, $p$ is the principal, $r$ is the interest rate (as a decimal), and $t$ is the time in years.<br />### $i = 1500 \times 0.045 \times \frac{7}{12}$<br />### $i = 1500 \times 0.045 \times 0.583333...$<br />### $i = 39.375$<br /><br />## Step 4: Round to two decimal places.<br />### The interest earned is $39.375. Rounded to two decimal places, this is $39.38.