If you borrow $700 for 6 months at 6% annual simple interest, how much must you repay at the end of the 6 months?
$

To calculate how much you must repay when borrowing money with simple interest, use the formula for simple interest:

\[
I = P \times r \times t
\]

where:
- $ I $ is the interest,
- $ P $ is the principal (the amount borrowed),
- $ r $ is the annual interest rate (as a decimal),
- $ t $ is the time in years.

### Step 1: Calculate the interest
In this case:
- $ P = 700 \, \text{USD} $
- $ r = 6\% = 0.06 $
- $ t = \frac{6}{12} = 0.5 \, \text{years} $ (since the loan is for 6 months)

Now calculate the interest:
\[
I = 700 \times 0.06 \times 0.5 = 21 \, \text{USD}
\]

### Step 2: Calculate the total repayment
The total amount you must repay is the principal plus the interest:
\[
\text{Total Repayment} = P + I = 700 + 21 = 721 \, \text{USD}
\]

Therefore, you must repay **$721** at the end of the 6 months.

Would you like more details or have any questions?

Here are some follow-up questions for deeper understanding:
1. How does the simple interest formula change for different time periods?
2. What would the repayment be if the interest rate were compounded monthly instead of simple?
3. How would the repayment change if the loan period were extended to 1 year?
4. What is the difference between simple and compound interest in terms of calculation?
5. How would the interest change if the principal were increased to $1000?

**Tip:** Always check the time period and the type of interest (simple vs. compound) when solving interest-related problems.

If you borrow $700 for 6 months at 6% annual simple interest, how much must you repay at the end of the 6 months?

Learn how to calculate the repayment for a $700 loan borrowed over 6 months at an annual simple interest rate of 6%. This step-by-step solution breaks down the formula for simple interest, showing how to compute the total repayment amount of $721.

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