Answer:
simple interest is $6.8
Miguel pay amount to Julio at the end of 6 months $206.8
Step-by-step explanation:
Given : Miguel Rodriguez borrowed $200 from his brother Julio to pay for books and tuition. He agreed to pay Julio in 6 months with simple annual interest at 6.8%.
To Find : a) How much will the interest amount to?
b) What amount must Miguel pay Julio at the end of 6 months?
Solution :
Formula for simple interest :
[tex]S.I. = principal*rate*time[/tex]
Where rate is in decimal
Time is in years
So, rate of interest = 6.8 % = 0.068
Time = 6 months = [tex]\frac{6}{12} = 0.5 years[/tex]
Principal = $200
Thus [tex]S.I. = 200*0.068*0.5[/tex]
[tex]S.I. = 6.8[/tex]
Now To calculate amount must Miguel pay Julio at the end of 6 months
Amount = principal +Simple interest
Amount = 200+6.8 =206.8
Hence the simple interest is $6.8
And Miguel pay amount to Julio at the end of 6 months $206.8
