Final answer:
To calculate the total amount Bob will owe Jack after one year, we calculate the simple interest on the $1,500 loan at 7% annual interest rate, which is $105, and add it to the principal, resulting in a total amount of $1,605 that Bob owes.
Step-by-step explanation:
Jack loaned Bob $1,500 at an annual interest rate of 7%. After one year, to calculate how much Bob will owe Jack, we use the formula for computing simple interest which is Interest = Principal × rate × time. For this situation, principal is $1,500, rate is 0.07 (as a decimal), and time is 1 year. The calculation is as follows:
Interest = $1,500 × 0.07 × 1 = $105
Now we add the interest to the principal to find out the total amount owed after one year:
Total Amount = Principal + Interest
Total Amount = $1,500 + $105
Total Amount = $1,605
Therefore, after one year, Bob will owe Jack $1,605.