00:02
So simple interest i is the principal times the rate times the time, where the time is measured in years.
00:12
So what we're going to say is that's p, that's the principal.
00:16
Well, he borrows $500, right? so that's our principal.
00:19
So 500, our rate is 6 .2%.
00:24
6 .2%.
00:25
So we're going to make that a decimal.
00:27
6 .2 is going to be 0 .062.
00:30
And then the time is six months.
00:34
So that's less than a year, right? that's half of a year.
00:36
So we're going to write that as 0 .5 to represent half of a year.
00:40
So the amount of principal or the amount of interest that he is owing is going to be equal to these three numbers multiplied together...