Question

I need help plz

Answer 1

You borrow $500 from your parents to buy a new computer. Your parents charge you 3% simple interest and give you two years to repay the money.
a) How much interest do you pay on the loan?
b) What is the total amount of money that you owe your parents?
(2 points)

Answer 2

So the formula for simple interest is Interest=P*R*T, where P is the amount borrowed, which is $500, R is the rate which is 3% which can be written as 3/100 and lastly T is time for repayment in years, which is 2. So,

I=(500)*(3/100)*(2)
I=$30 is how much interest you pay on the loan.

b) now the total amount that you owe, would be the amount borrowed + the interest, hence $500+ $30 = $530

Hope that makes sense :)