Question

Miguel Rodriguez borrowed $500 from his brother Julio to pay for books and tuition. He agreed to pay back in 6 months with simple interest at 6.2. How much will the interest amount to? What amount must Miguel pay Julio at the end of 6 months?

Answer 1

he will pay $31 in interest after 6 months so after 6 months he will pay $531

Answer 2

Interest amount to $15.5.

Miguel must pay $515.5 Julio at the end of 6 months.

Explanation:

Given :Miguel Rodriguez borrowed $500.

He agreed to pay back in 6 months with simple interest at 6.2.

To Find :How much will the interest amount to? What amount must Miguel pay Julio at the end of 6 months?

Solution:

Principal (P)= $500

Rate of interest(R)= 6.2%

Time= 6 months = 0.5 years

Formula :
`SI = (P * R * T)/(100)`

`SI = (500 * 6.2 * 0.5)/(100)`

`SI = 15.5`

So,the interest amount to $15.5

Amount = Principal +Interest

Amount = $500+$15.5

Amount = $515.5

So, Miguel must pay $515.5 Julio at the end of 6 months.