Question

Complete each question, showing as much work as possible to show how you determined your answer. 1. Michael borrowed $24,000 from his parents at 4.25% simple interest to make a down payment on a house. He plans to repay the loan at the end of 3 years with money from his yearly bonuses. If the principal and interest are repaid in one lump sum, what amount will he have to pay his parents at the end of the 3 years to retire the loan? 2. Steven borrows some money from his brother. Dennis charged Steven simple interest on the loan. If Steven pays back $6450 on the $6000 loan 18 months later, what was the interest rate that Dennis charged Steven?

          Complete each question, showing as much work as possible to show how you determined your answer.

1. Michael borrowed $24,000 from his parents at 4.25% simple interest to make a down payment on a house. He plans to repay the loan at the end of 3 years with money from his yearly bonuses. If the principal and interest are repaid in one lump sum, what amount will he have to pay his parents at the end of the 3 years to retire the loan?

2. Steven borrows some money from his brother. Dennis charged Steven simple interest on the loan. If Steven pays back $6450 on the $6000 loan 18 months later, what was the interest rate that Dennis charged Steven?

Complete each question, showing as much work as possible to show how you determined your answer.

1. Michael borrowed 24,000 from his parents at 4.25% simple interest to make a down payment on a house. He plans to repay the loan at the end of 3 years with money from his yearly bonuses. If the principal and interest are repaid in one lump sum, what amount will he have to pay his parents at the end of the 3 years to retire the loan?

2. Steven borrows some money from his brother. Dennis charged Steven simple interest on the loan. If Steven pays back6450 on the 6000 loan 18 months later, what was the interest rate that Dennis charged Steven?

Added by Tina S.

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