Question

Dan borrowed $750.00 from his brother who is charging him 8% simple interest. If Dan pays his brother back in 6 months, how much does he have to pay back including the interest?

Answer 1

Solution:

we are given that

Dan borrowed $750.00(=P) from his brother who is charging him 8% (=r)simple interest.

Dan pays his brother back in 6 months(=t).

we have been asked to find- how much does he have to pay back including the interest?

As we know that

$(Simple \ Interest)SI=\frac{PRT}{100}$

Substitute the values we get

$SI=\frac{750*8*1/2}{100}= 30$

Hence net payable amount is 750+30=$780

Answer 2

If it is not a yearly interest rate, then he pays back $810.

8% = 8/100 = 0.08; 750(0.08) = 60; 750+60 = 810.