Final answer:
Jack will owe $55.73 in simple interest.
Step-by-step explanation:
To calculate simple interest, we use the formula:
Simple Interest = Principal × Rate × Time
In this case, Jack borrowed $2,700 at a rate of 8.2% per year. Since it took him 3 months to repay the loan, we need to convert this time into years. There are 12 months in a year, so 3 months is equivalent to 3/12 = 0.25 years.
Plugging the values into the formula, we get:
Simple Interest = $2,700 × 0.082 × 0.25 = $55.725
Rounding to the nearest cent, Jack will owe $55.73 in simple interest.Simple interest is a straightforward method of calculating the interest on a principal amount over a fixed period. It is determined by multiplying the principal by the interest rate and the time duration. I=P×R×T, where I is the interest, P is the principal amount, R is the interest rate per time period, and T is the time in years. Unlike compound interest, simple interest does not consider the interest earned in previous periods, making it a linear calculation and often used for short-term loans or financial instruments.