Question

Lily's car broke down the weekend before she started a new job. She borrowed $880 from her parents at an annual interest rate of 3% to quickly pay for the car repairs. If Lily paid her parents a total of $893.20 in six months how much simple interest did she pay?

Answer 1

`\begin{gathered} I=PV\cdot r\cdot t \\ I=880\cdot0.03\cdot0.5=13.2 \end{gathered}`

Or you can simply:

`893.2-880=13.2`