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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 :

Lanuelidn

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

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