The formula in computing the simple interest of a loan is:
I = Prt
Where I = interest
P =
Principal
r =
simple interest rate
t = time
in years
Substituting the given to the formula:
I = ($5,350)(6%)(5/12)
** take note that the time should be in years so we need to
convert the 5 months to years
I = $133.75
