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Jim took out a loan for $500 . The rate is 8%. How much does Jim owe in interest if he plays it back in 4 1/2 years?

What is the balance that jim owes for his loan?

Sagot :

agbliyah

Answer:

If jim pays the loan back in 4 1/2 years he will be paying $597.03

Step-by-step explanation:

As per simple interest, Jim owes $180 in interest.

Jim owes a balance of $680 for his loan.

What is a simple interest?

"By definition, simple interest is the interest amount for a particular principal amount of money at some rate of interest."

Given, the loan amount is P = $500.

The rate of interest is i = 8% = 0.08.

The duration is [tex]4\frac{1}{2}[/tex] years t = 4.5 years.

Therefore, the interest after the mentioned period

= (P × i × t)

= $(500 × 0.08 × 4.5)

= $180

Therefore, Jim owes $180 in interest if he pays it back in mentioned time period.

The balance that Jim owes for loan is

= $(500 + 180)

= $680

Learn more about simple interest here: https://brainly.com/question/23242722

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