00:01
For this problem, $5 ,000 was borrowed at 3%, and we need to figure out how much is owed after six months.
00:12
All right, so the formula for simple interest is a, which is the final amount, is equal to p, which is the principle, times the quantity of 1 plus r times t, where r is the rate as a decimal, and t is time in years.
00:47
All right, so in this problem, we have 3 % as our rate.
00:54
We'll need to change that to a decimal by moving two places to the left.
01:03
All right, then we have a time that is six months, but we need to put the six months in years.
01:12
So time is six months, and six months is one half of a year.
01:21
And we can also write that as a decimal, so it makes it easier substituting into the calculator and the formula.
01:30
All right, so now we have the information that we need, and we can substitute in.
01:36
All right, we are looking for the final amount...