Answered

Westonci.ca is the best place to get answers to your questions, provided by a community of experienced and knowledgeable experts. Our platform connects you with professionals ready to provide precise answers to all your questions in various areas of expertise. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

If you borrowed $2000 from your friend to buy a triathlon bike with a simple interest loan of 7%
annual interest rate for 6 months. How much money will you need to pay them back after the 6
months?

Sagot :

Lanuel

The amount of money that you will need to pay them back after the 6 months is $2,070.

Given the following data:

Interest rate = 7% = 0.07.

Simple interest = $2000.

Time = 6 months.

Conversion:

12 months = 1 year.

6 months = 0.5 year.

How to calculate simple interest.

Mathematically, simple interest is given by this formula:

[tex]I=PRT[/tex]

Where:

  • S.I is the simple interest.
  • P is the principal or starting amount.
  • R is the interest rate.
  • T is the time measured in years.

Substituting the given parameters into the formula, we have;

[tex]I=2000 \times 0.07 \times 0.5[/tex]

I = $70.

Amount to be paid;

[tex]A=I+P\\\\\A=70+2000[/tex]

A = $2,070.

Read more on simple interest here: brainly.com/question/24341207

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.