Given:
Miguel Rodriguez borrowed $500 from his brother Julio to pay for books and tuition.
He agreed to pay Julio in 6 months with simple annual interest at 6.2%
So, the interest = r = 6.2% = 0.062
the time = t = 6 months = 6/12 years = 1/2 year
a.) how much will the interest amount to?
The interest is given by the formula:
[tex]I=P\cdot r\cdot t[/tex]Substitute with the given values:
[tex]I=500\cdot0.062\cdot\frac{1}{2}=15.5[/tex]So, the interest = I = $15.5
b.) what amount must Miguel pay Julio at the end of 6 months?
So, Miguel will pay the amount that he borrowed and the interest
so, he will pay:
[tex]P+I=500+15.5=515.5[/tex]So, the answer will be: $515.5
