1. **State the problem:** Find the simple interest on a loan of 3000 at 7.2% annual interest for 10 months. 2. **Formula for simple interest:** $$I = P \times r \times t$$ where $I$ is the interest, $P$ is the principal, $r$ is the annual interest rate (in decimal), and $t$ is the time in years. 3. **Convert given values:** - Principal $P = 3000$ - Annual interest rate $r = 7.2\% = 0.072$ - Time $t = \frac{10}{12} = \frac{5}{6}$ years (since 10 months is $\frac{10}{12}$ of a year) 4. **Calculate the interest:** $$I = 3000 \times 0.072 \times \frac{5}{6}$$ 5. **Simplify step-by-step:** $$I = 3000 \times 0.072 \times \frac{5}{6} = 3000 \times \cancel{0.072} \times \frac{5}{6}$$ Calculate $0.072 \times \frac{5}{6}$: $$0.072 \times \frac{5}{6} = 0.072 \times 0.8333\ldots = 0.06$$ 6. **Final multiplication:** $$I = 3000 \times 0.06 = 180$$ 7. **Answer:** The simple interest is **180.00** to the nearest cent.