5. the jones family borrowed $1.200 for 6 months at 3.25% interest. how much interest will they pay across…

5. the jones family borrowed $1.200 for 6 months at 3.25% interest. how much interest will they pay across the life of their loan?

5. the jones family borrowed $1.200 for 6 months at 3.25% interest. how much interest will they pay across the life of their loan?

Answer

Answer:

( $19.5)

Explanation:

Step1: Convert time to years

Since the loan is for (6) months and (1) year has (12) months, (t=\frac{6}{12} = 0.5) years.

Step2: Use simple - interest formula (I = Prt)

Given (P=$1200), (r = 3.25%=0.0325), and (t = 0.5) years. Substitute into the formula: (I=1200\times0.0325\times0.5). First, (1200\times0.0325 = 39). Then, (39\times0.5=$19.5).