Question

Miguel Rodriguez Borrowed $400 from his brother Julio to pay for books and tuition. He agreed to pay Julio in 6 months with simple annual interests at 6.8% How much will the interest amount to what amount must Miguel pay Julio at the end of 6 months

Answer 1

13.00

Explanation:

That is only if the annual interest is 6.3

and the final was $413.00

Answer 2

The simple interest is calculated as :

S.I = P*T*R

where S.I is the simple interest to be calculated

P = Principal

T = Time period in years

R = Annual interest rate

The the above problem,

Amount borrowed which would be the principal (P) = $400

Time period = 6 months = 1/2 year

Annual interest rate = 6.8% = 6.8/100 = 0.068

Simple Interest = P*T*R

Simple Interest = 400*1/2*0.068 = 200 *0.068

Simple Interest = $13.6

The simple interest amount that Miguel must pay to Julio at the end of six months is $13.6