Question

Miguel Rodriguez borrow $400 from his brother Julio to pay the books and tuition. he agreed to pay Julio in six months with simple annual interest of 6.9%

A. how much will the interest amount to
B. what amount must Miguel pay Julio at the end of the six months

Answer 1

• 1st Divide $400 into 6.9% your answer is 27.6

Answer 2

A. The interest at the end of the six months will be $13.8. B. Miguel must pay $413.8.

Explanation:

Step 1: First we must calculate the annual interest of 6.9% on the total debt ($400).

$400 * 6,9%/100% = $27,6

This amount would be the equivalent of one year's repayment of the debt.

Step 2: As only six months passed, the interest to be paid will be half of what is equivalent to the annual interest.

$27,6 / 2 = $13,8

This is the amount of interest to be paid during the six months.

Step 3: Finally, to calculate the final amount that Miguel will have to pay, we add the amount of the debt acquired with the interest produced during the six months.

$400 + $13,8 = $413,8

Have a nice day!