Question

Colin borrowed $500 from his brother who agreed to charge him 5% annually. How much will Collin owe his brother if he pays him back after 6 months?

Answer 1

$512.50

Explanation:

500/100 = 5

5/2 = 2.5

100 + 2.5 = 102.5%

5 x 102.5 = $512.50