Final answer:
The Jones family will pay $19.50 in simple interest on a loan of $1,200 borrowed for 6 months at an interest rate of 3.25%.
Step-by-step explanation:
The question involves calculating the amount of simple interest the Jones family will pay on a loan. Simple interest can be computed using the formula I = PRT, where I represents the interest, P is the principal amount borrowed, R is the annual interest rate (expressed as a decimal), and T is the time in years the money is borrowed for.
To answer the question: the Jones family borrowed $1,200 for 6 months at an annual interest rate of 3.25%. Their interest payment can be calculated as follows:
- First, convert the annual interest rate to a decimal by dividing by 100: 3.25% / 100 = 0.0325.
- Since the time is given in months, convert it to years: 6 months / 12 = 0.5 years.
- Now, apply the simple interest formula: I = $1,200 * 0.0325 * 0.5.
- Calculate the interest: I = $19.50.
Therefore, the Jones family will pay $19.50 in interest.