To determine the interest paid on a 3-month loan amounting to \[tex]$545,000 given a business risk percentage of 2.2% and a LIBOR percentage of 1.8%, we can follow these steps:
1. Convert the percentage rates to decimal form:
\[
\text{Business Risk Rate} = \frac{2.2}{100} = 0.022
\]
\[
\text{LIBOR Rate} = \frac{1.8}{100} = 0.018
\]
2. Sum these rates to get the total interest rate:
\[
\text{Total Interest Rate} = 0.022 + 0.018 = 0.040
\]
3. Convert the loan term from months to years:
Since there are 12 months in a year, the loan term in years is:
\[
\text{Loan Term in Years} = \frac{3}{12} = 0.25 \text{ years}
\]
4. Calculate the interest paid using the formula for simple interest:
\[
\text{Interest Paid} = \text{Principal Amount} \times \text{Total Interest Rate} \times \text{Loan Term in Years}
\]
Substituting the values we have:
\[
\text{Interest Paid} = 545000 \times 0.040 \times 0.25
\]
5. Compute the product:
\[
\text{Interest Paid} = 545000 \times 0.01 = 5450
\]
Therefore, the interest paid at the end of the 3-month loan term would be \$[/tex]5,450.
