Miguel Rodriguez borrow 200 from his brother Julio to pay for books and tuition. He agreed to pay Julio 6! months with simple annual interest at 6.2% A) how much with the interest amount to? B) what amount must Miguel pay Julio at the end of 6 months?

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Miguel Rodriguez borrow 200 from his brother Julio to pay for books and tuition. He agreed to pay Julio 6! months with simple annual interest at 6.2% A) how much with the interest amount to? B) what amount must Miguel pay Julio at the end of 6 months?

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Justin Hanna · Answer 1

To answer the problem, you must the formula in finding the interest and after that we will add it to the principal to get the future value.

The formula is: I = Prt

Interest = Principal x rate x time

= 200 x 0.062 x 6/12

= $6.2 is the interest for 6 six months.

Future Value = Principal + Interest

FV = 200 + 6.20

FV = $206.20 is the amount to be paid at the end of 6 months.