Respuesta :
Given:
The initial sum of money borrowed was $750
at a simple interest rate of 8%
Dan pays the money back in 6 months
To Find:
The amount of money Dan has to pay back his brother including the interest in 6 months' time.
Answer:
The total amount accrued, principal plus interest, from simple interest on a principal of $750 at a rate of 8% per year for 6 months is $780.
Step-by-step explanation:
The total interest that is to be paid back can be calculated using the formula
[tex]P.r.t[/tex]
where P is the prinicipal amount of money we begin with (in this case $750), r is the rate of interest (in this case 8%) and t is the time period (in this case, 6 months or 1/2 of a year).
(Note that we must take the value of t in years if the interest is annual interest and that is why we use t = 1/2 = 0.5 instead of t = 6).
So, by simple calculation we can find interest to be paid as
[tex]P.r.t = (750)(\frac{8}{100})(\frac{1}{2}) = 30[/tex]
Therefore, the interest accrued is $30
To find the total sum to be paid back, we add the initial sum or pricipal amount to the interest we have calculated above i.e.,
[tex]750+30=780[/tex]
Thus the total amount accrued, principal plus interest, from simple interest on a principal of $750 at a rate of 8% per year for 6 months is $780.
