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8 April, 05:50

The Jones family wants to remodel their kitchen. They have saved in the last two years. Their contractor says the remodel will cost. They can borrow the difference at a monthly interest rate of simple interest. If they pay the loan off in six months, how much will they have paid?

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  1. 8 April, 05:56
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    Jones family will pay $19,040

    Step-by-step explanation:

    The question is not complete;

    The complete question is as follows;

    The Jones family wants to remodel their kitchen. They have saved $23,000 in the last two years. Their contractor says the remodel will cost $40,000. They can borrow the difference at a monthly interest rate of 2% simple interest. If they pay the loan off in six months, how much will they have paid

    Solution

    The amount they are seeking to borrow is; $40,000 - $23,000 = $17,000

    We can now remodel the question to be; what amount would be paid back by he Jones family if they borrow $17,000 at an interest rate of 2% monthly for a total of six months.

    To answer this, the formula to use is the simple interest formula

    Mathematically

    I = PRT/100

    where P is the principal amount of $17,000

    R is the rate at 2%

    and T is the time at 6 months

    Let us plug these values;

    I = (17,000 * 2 * 6) / 100 = $2040

    Thus, the amount to be paid back is P + I (principal + interest) = 2040 + 17,000 = $19,040
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