Answer
$49.88
Work Step by Step
We can calculate simple interest on a loan by using the formula $I=prt$ (where I is the interest, p is the principal, r is the rate of interest, and t is the amount of time - expressed in years).
$r=7\frac{1}{2}$%$=7.5\div100=.075$
$t=\frac{1}{4}$, because 3 months equals .25 years
$I=prt$
$I=2660\times.075\times\frac{1}{4}=49.88$ dollars
