Question

Judy broke her leg and the medical bills are $3000. Her parents are offering to pay her medical bills at an annual simple interest rate of 6%. How much will Tamara pay in interest at the end of the year?

Answer 1

SIMPLE INTEREST

Judy broke her leg and the medical bills are $3000. Her parents are offering to pay her medical bills at an annual simple interest rate of 6%. How much will Tamara pay in interest at the end of the year?

Explanation:

As per the provided information in the given question, we are given that the principal amount (medical bills) is $3000. The interest rate per year is 6% or 0.06 in decimal form. The time in years is 1 year. In this problem, we are asked to find or calculate how much will Tamara pay in interest at the end of the year.

In order to calculate the interest Tamara will pay at the end of the year, we can use the formula for simple interest:

`\Large\qquad\begin{aligned} \implies \boxed{ \boxed{ \rm\: \: I = Prt \: \: }}\end{aligned}`

where:

• I is the interest.
• P is the principal amount (the medical bills).
• r is the interest rate per year (6% or 0.06 as a decimal)
• t is the time in years (1 year)

Substitute the given values into the simple interest formula and solve for I:

`\Large\begin{aligned}\rm\implies I& =\rm (3000)(0.06)(1) \\\rm\implies I& =\rm (180)(1) \\\rm\implies I& =\rm 180 \end{aligned}`

Hence, Tamara will pay $180 in interest at the end of the year.