Question

Randall is saving for a $700 dirt bike. He has already saved $125 when he sees that the bike he wants is on sale for $550. He decides to ask his Dad for a loan to cover the rest of the cost. His father lends Randall the money at a simple interest rate of 3% per year.

How much does Randall wind up paying to his Dad if he waits two years to pay back the entire loan plus interest?

Answer 1

How much does he need to borrow?

Answer 2

i think a simple interest rate of 3% per year @Mertsj

Answer 3

Does he have enough money to buy the bike?

Answer 4

Don't try to make it harder than it is. Does he have enough money? Yes or no

Answer 5

yes

Answer 6

Are you sure?

Answer 7

Then why does he want to borrow money from his dad?

Answer 8

His father lends Randall the money at a simple interest rate <--- that sounds pretty bad for a father =)

Answer 9

Let's not make this too complicated because this is a pretty easy problem. Since Randall has already $125 and he new price is $550, how much more money does Randall need to get?

Answer 10

@jdoe0001 Maybe not. Maybe all the kid does is sit around the basement and smoke pot all day.

Answer 11

hehe

Answer 12

$425 @calculusxy

Answer 13

Correct. Now let's calculate the simple interest. Since the simple interest is three percent per year, what will the simple interest be if there are two years?

Answer 14

im sorry idk.. @calculusxy

Answer 15

3% for one year
How uch will there be for the second year? (Add another 3%)

Answer 16

0.0009

Answer 17

3+3=?

Answer 18

oh 9

Answer 19

i thought it was 0.03x2

Answer 20

@calculusxy

Answer 21

Do you know your addition?

Answer 22

oh sorry its 6

Answer 23

Correct. So it would now be 6% after two years. Remember that Randall wants to pay it within two years. Now you can compute the interest along with the money that he needs to get ($425).

Answer 24

ok but now what do i do

Answer 25

What was your answer to the thing that I gave you to do?

Answer 26

2,250

Answer 27

To calculate interest, you must put the percent as to a decimal, so 6% is equal to 0.06. Then you multiply that with $425. Add that product to $425.

Answer 28

i did that but i did 425x6

Answer 29

No do that with 0.06

Answer 30

ok know that it is $425
what do i need to do next?

Answer 31

What was your product after doing 425x0.06?

Answer 32

25.5

Answer 33

Add that with $425.

Answer 34

450.5

Answer 35

Do you see any options that has that?

Answer 36

yep thx i got it!

Answer 37

No problem. And your welcome. ✅😃