louis borrowed $500 from his bank his bank will charge louis 8% simple interest per year to loan him the money if he paid back the total amount he owed the bank including interest in 6 months how much should he have paid
500(1 + 0.08*6/12)
To calculate the amount Louis should have paid back, including the interest, we need to determine the interest amount first.
Simple interest can be calculated using the formula:
I = P * R * T
Where:
I = Interest
P = Principal amount (the amount borrowed)
R = Interest rate per period
T = Time (in years)
In this case, Louis borrowed $500, the interest rate is 8% per year, and the time period is 6 months (0.5 years).
Plugging in the values:
I = 500 * 0.08 * 0.5
I = $20
So, the interest Louis should have paid is $20.
To find the total amount he should have paid back, we sum the principal and the interest:
Total Amount = Principal + Interest
Total Amount = $500 + $20
Total Amount = $520
Therefore, Louis should have paid back $520 in total, including the interest.
To calculate the total amount Louis should have paid back, including the interest, we need to use the simple interest formula:
Simple Interest = Principal Amount x Interest Rate x Time
Here, the principal amount is $500 and the interest rate is 8% per year. However, since he paid back the money within 6 months, we need to adjust the time accordingly.
Time can be expressed in years, so we divide 6 months by 12 to convert it into years:
Time = 6 months / 12 months/year = 0.5 years
Now we can calculate the interest:
Simple Interest = $500 x 8% x 0.5
To find the total amount Louis should have paid, we add the principal amount to the interest:
Total Amount = Principal Amount + Simple Interest
Total Amount = $500 + ($500 x 8% x 0.5)
Total Amount = $500 + ($500 x 0.08 x 0.5)
Total Amount = $500 + ($500 x 0.04)
Total Amount = $500 + $20
Total Amount = $520
Therefore, Louis should have paid $520 in total, including the interest.