Joe is borrowing $600 from his parents in order to finish paying his tuition bill. His  parents agree to the loan if Joe will repay the money at the end of nine months. His  parents will charge him 3% annual simple interest. How much interest will Joe owe his  parents? How much will Joe have to pay his parents at the end of the nine months?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
icon
Related questions
Question

Joe is borrowing $600 from his parents in order to finish paying his tuition bill. His 
parents agree to the loan if Joe will repay the money at the end of nine months. His 
parents will charge him 3% annual simple interest. How much interest will Joe owe his 
parents? How much will Joe have to pay his parents at the end of the nine months?

 

 

please keep the answer simple and short Because i have to write this in a small space, thank you in advance

Expert Solution
Step 1

Simple interest (SI)=Principal amount (P)×Rate of interest (R) in decimal ×Time(T) as a fraction of a year.

Therefore SI=PRT

Maturity value or total amount =P+SI

 

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Intermediate Algebra
Intermediate Algebra
Algebra
ISBN:
9780998625720
Author:
Lynn Marecek
Publisher:
OpenStax College
Elementary Algebra
Elementary Algebra
Algebra
ISBN:
9780998625713
Author:
Lynn Marecek, MaryAnne Anthony-Smith
Publisher:
OpenStax - Rice University