The problem says you need a simple interest bridge loan.
You need to finance $73,000.
The interest rate is 6% (0.06)
You need the loan for 9 months.
The formula for simple interest rate is the following:
[tex]SI=P\cdot r\cdot t[/tex]Where SI is the simple interest. P is the principal or money borrowed. r is the interest rate in decimal form. t is the time in years.
As you need the loan for 9 months, we need to convert it to years, as follows:
[tex]9\text{months}\cdot\frac{1\text{year}}{12months}=0.75years[/tex]Now, replace the known values and solve for SI:
[tex]\begin{gathered} SI=73,000\cdot0.06\cdot0.75 \\ SI=3,285 \end{gathered}[/tex]You will pay $3,285 interest for the loan.
